Equities
Equities are the primary engine of growth for the portfolio. We look for companies that are growing their earnings at an above average pace while trading at a competitive price earnings ratio relative to their peers. This style of management is referred to as Growth At A Reasonable Price (GAARP).
The equity asset class is divided into four sub-asset classes: U.S. Large Cap, U.S. Mid Cap, U.S. Small Cap and International. The U.S. Large Cap sector is managed through investments in specific company common stocks with strong GAARP traits. For the other equity sub-sectors, we build the allocation around low expense index exchange trade funds and augment the index holdings with individual companies meeting GAARP criteria. This guards against index drift while enhancing the allocation with companies showing attractive growth and valuation traits.
Over the long term, equity markets are relatively efficient. When they experience short-term volatility, we make efforts to capitalize on advantageous entry and exit points. We understand that excess management fees within assets means less return to our clients. That’s why we monitor both markets and fees to provide competitive net returns for our clients.
