Investments

PARTICIPATION IN A RANGE OF CAPITALIZATION’S: My primary focus rests on a Top-Down Philosophy. I implement a blended and balanced approach to asset management. My studies have shown that combining Growth with Value can reduce overall volatility and improve returns. For this reason I build portfolio foundations primarily consisting of "Core U.S. Equity".

The Balanced Portfolio: U.S. large cap, small / mid-cap, international equities, as well as debt and money market instruments: I believe superior investment returns are attributable to the asset allocation decision, which is a primary function of my services and my integrated views of global capital markets. My proprietary TROIKA model guides my asset allocation decision-making process. U.S. Large Cap Equities: My investment philosophy is based on the belief that the price of a company's stock correlates with the direction and rate-of-change of a company's earnings. In line with this, I seek to invest in companies that are increasing their net income annually more than the average as measured by the S&P 500. I look for long-term trends, which I feel will present the most favorable prospects for substantial and sustainable growth. Growth Investing: My goal is to find outstanding growth stocks meeting the strict criteria of our managed portfolios. o Use a company’s quality to reduce risk o Be willing to pay for quality and market share gains o The business model should make sense and be understandable o Don’t pay a big multiple for an indefensible position or a short-term trend Value Investing: At my core, I position myself as a Growth manager, however I utilize value as part of a Strategic weighting which is part of the portfolios "foundation". Here I blend growth and value to establish a base for the portfolio. In looking for "value" I utilize a Bottom-up approach focusing on established companies that I believe have good management, an attractive valuation and a catalyst for stock price appreciation. Value Themes: Use purchase price to reduce risk Avoid being disinter-mediated by competition Find value companies that can turn into growth companies In slow growth industries, buy dominant, cash-generating companies at the right price Beware value traps – cheap for a reason Seek a lower valuation than the S&P 500 (P/E ration) yet at comparable growth rates. Focus on identifying favorable entry points U.S. Small/Mid-Cap Equities: I seek appreciation by investing in small cap companies, which I believe, have favorable growth prospects. I consider investments in small/mid-capitalization growth companies that have exhibited consistent earnings growth characteristics. I believe the market inefficiencies within the small/mid-cap stock universe (Russell 2500) create opportunities to purchase stocks at multiples below their earnings growth rates. I look to manage risk by constructing broadly diversified portfolios with assets spread among various sectors. On International Equities: I utilize an investment discipline, which incorporates both the macro-economic and political trends (top-down) as well as fundamental analysis of individual securities (bottom-up). I emphasize the selection of the right country and region when investing in emerging markets whereas individual stock selection is as important in the developed nations. Significant overweighting or underweighting of countries relative to the EAFE Index can occur based upon macro-economic, political and valuation factors. However, sufficient country diversification if maintained can reduce risk. Individual stock selection process is fundamentally driven, with emphasis on earnings growth, quality of management, industry reputation and the strength of the company's balance sheet. Taxable Fixed Income: My overall investment philosophy centers on the management of inflation risks and basic credit risks, in order to provide return. This includes targeting attractive market sectors, coupons and determining an appropriate quality profile. In addition, I regularly examine the yield curve to seek added value. Municipal Bonds: My municipal-bond-portfolio strategy relies heavily on a "Value" approach. Emphasis is placed on the yield curve and various factors are combined with projections for interest rates to target specific maturities and serve a specific function within a portfolio strategy. Common Themes considered in evaluating equity investments: o Management Track Record Quality of decisions Industry experience A Clear Vision Insider Transactions Compensation Business Quality: Franchise Growth prospects Strategy within industry Financial Quality: Balance sheet Cash generating ability Valuation: Absolute Relative Sector Unique Tradeoffs: o What do we trade the stocks off for?