ABOUT OUR MODELS

This strategy invests primarily in domestic, mature, blue-chip companies with a blended yield exceeding that of the S&P 500 benchmark. The allocation is generally tilted to large companies with consistent earnings growth and executive teams focused on increasing money returned to shareholders in the form of dividend income. On average, the Equity Income strategy will hold 35 companies, with no single company making up more than 5% of the portfolio.

• Strategy Goal:  Generate stable dividend income above the benchmark yield with secondary goal of capital appreciation through compounding over time.
• Selection Process:  Focus on larger businesses that demonstrate stable or growing dividend income yields and solid executive decision making with their internal capital allocation plans. 
• Risks Assessment:  We aim to reduce the risk of permanent loss of capital by owning large, mature companies with track records of prudent capital management. Additionally, each investment undergoes a diligence process to ensure, through our analysis, that there is a margin of safety of our purchase price relative to the estimated valuation. 

This strategy invests primarily in domestic, mid- and large-capitalization companies that, when blended, aim to offset the loss of purchasing power that comes from inflation over the long term. On average, the Growth & Income strategy will hold between 25 and 35 securities that demonstrate either stable growth or dividend income above that of expected inflation. 

• Strategy Goal:  Generate superior risk-adjusted returns by investing in businesses that demonstrate growth or dividend income above that of expected inflation. 
• Selection Process:  Focus on businesses that whose revenue is generated in markets or sectors that may be experiencing above-average growth, or companies that have demonstrated dividend income over that of expected inflation. 
• Risks Assessment:  We aim to reduce the risk of permanent loss of capital by owning a blend of businesses that, through our diligence process, show fundamental strength and stability. 

This strategy invests primarily in domestic equities with strong growth trajectories in their business or sector where our estimated intrinsic value has not been reflected in the market price. On average, the Growth strategy will hold between 25 and 35 securities, this strategy invests in the domestic stock market and in companies determined to reinvest earnings in themselves to fuel growth. The portfolio includes about 30 stocks.

• Strategy Goal:  Generate superior risk-adjusted returns by investing in companies whose growth is expected to lead to capital appreciation. 
• Selection Process:  Focus on businesses that have not yet saturated their market or sector or are growing into new revenue streams where we expect above-average returns over the benchmark.
• Risks Assessment:  We aim to reduce the risk of permanent loss of capital by owning a blend of businesses that are large enough to have proved their business model, yet are still growing at an above-average rate where the market may not have fully valued our estimate of intrinsic value.