Personalized Investment
We employ a bottom-up, fundamental research process focused on mid to large cap equities. Starting with a large, unbiased universe of equities, we apply our proprietary screening model to find those companies that have growth at a reasonable value. We feel this combines the best of growth and value investing, macro factors, and sector considerations. When a potential investment is found, we proceed by rigorously reviewing the company’s fundamentals. This includes an examination of each company’s financial statements, as well as qualitative factors. Our primary focus is on valuation. We determine the fair value of each business and evaluate the company’s track record and growth prospects. If we are satisfied with the outlook and the company is selling at a discount to fair value, we will add it to client portfolios.
Individual portfolios hold approximately 40 stocks at any given time. Any more diversification would lead to a regression to the mean, which is generally the S&P 500. We selectively overweight or underweight sectors based on macro considerations. We focus on US based equities. Our home country bias has served our clients well, as International and Emerging market stocks have underperformed by approximately 4% per year since 1986. We feel strongly that over-diversifying into international equities not only costs performance, but adds fees. Our clients gain significant exposure to international growth through our focus on large cap companies with a global footprint. We strive to be tax efficient for our clients and use several strategies to maximize after tax profits. In addition, we intentionally avoid mutual funds due to the well know tax issues.
Finally, we use tactical call writing to add income to portfolios, add downside protection, and potentially enhance returns. As interest rates have approached zero over the last 2 decades, this enhanced income has become more important with bonds becoming unattractive.
An Ongoing Process For The Best Results
At Selway Asset Management, each client is incredibly important to us and we constantly strive for every individual’s success. After the investment decision is made, we monitor the position for new developments, changing trends, or any other circumstance that would enhance or degrade the valuation. Most importantly, we have a very defined price target at which we will sell the investment to lock in profits. This step is as important as the buy decision and is often overlooked.
Start investing your wealth by calling us today.
