Investment Philosophy

We seek to invest in companies that:

• Have management teams that exude integrity, intelligence, and acumen, that own a material stake in the company, that are opportunistic and have an impeccable track record for achieving above-average growth 
• Generate a substantial and growing amount of free cash flow that can be used for product development, new store openings, acquisitions, dividends, or share repurchases 
• Have material barriers to entry that give us confidence that the company will continue to generate substantial free cash flow well into the future
• Demonstrate a track record of investing free cash flow efficiently to grow the core business, buy back stock at attractive prices, and/or pay a dividend, and that have historically achieved a high rate of return on invested capital
• Have ample opportunities to deploy additional capital into core or adjacent businesses in ways that may generate a high return on investment
• Generate above-average profit margins, and are leaders in their industries
• Are spin-offs and/or are under-followed and under-owned by institutions
• Can be acquired at a reasonable valuation when compared to their growth prospects, and where we believe our purchase price includes an acceptable margin of safety

On a macro basis: 

• Our portfolios will generally include a mix of blue chip companies that have a history of paying and growing their dividends.  We also consider smaller companies that may not pay a dividend but, from our analysis, have a much higher growth potential.
• We prefer to invest in businesses that we thoroughly understand and where we can engage in meaningful due diligence.
• We will use dynamic asset allocation to more appropriately match our clients' level of equity exposure with our perceived view of long-term equity returns.
• Finally, we may use exchange traded funds (ETFs) and index funds to obtain broad and diversified exposure to foreign developed and emerging markets, as well as certain industries that we believe are promising, but where it is unrealistic to attempt to pick the ultimate winners.

Investing involves risk, including the possible loss of principal, and there is no guarantee that these objectives will be met. Asset allocation does not ensure a profit or protect against loss.  When investing in dividend-paying companies, changes in market conditions or a company's financial condition may impact a company's ability to continue to pay dividends or companies may also choose to discontinue dividend payments.  There are special considerations associated with international investing, including the risk of currency fluctuations and political and economic events.  Investing in emerging markets may involve greater risk and volatility than investing in more developed countries.  

Mutual funds and exchange traded funds (ETFs) are offered by prospectus only.  Investors should consider a fund's investment objective, risks, charges, and expenses carefully before investing.  The prospectus, which contains this and other important information, is available from your Financial Advisor and should be read carefully before investing.  The investment return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost.  ETFs trade like a stock and may trade for less than their net asset value.  There will be brokerage commissions associated with buying and selling exchange traded funds unless trading occurs in a fee-based account.