We have specific investment expertise in a number of asset classes that offer good risk adjusted returns and appropriate diversification.  We offer the following six core investment management styles: 

Core Equity Tax-managed   
Our Core Equity Tax-managed strategy focuses on customizing a portfolio of U.S. domestic companies and foreign companies traded as American Depository Receipts (ADRs).  The process begins with computerized screening using proprietary inputs to narrow a list of 10,000+ companies down to a smaller group of between 100-200 companies.  Then a series of steps are taken to identify fundamental, technical and valuation characteristics of each company within a pre-determined set of benchmarks that is monitored from both a strategic and tactical perspective.  Combined with our own proprietary research and bottom-up analysis, we build a unique and customized portfolio at a given point in time.  We benchmark our performance to the S&P 500.  This portfolio is suitable for portfolios with taxable status such as for individuals, families, and corporations. 

Core Equity 
This strategy is identical to our Tax-managed strategy except it excludes the tax managed disciplines and turnover may be somewhat higher.  We benchmark this performance to the S&P 500 and find it suitable for tax-free portfolios such as retirement accounts, foundations, and endowments.

U.S. Small-cap Equity 
Cost-effective vehicles for participation in U.S. small capitalization companies are Exchange Traded Funds (ETFs) for allocations of $5 million or less.  For clients with needs above $5 million, we employ sub-advisers to assist us in managing a portfolio of smaller domestic companies.  We seek out sub-advisors with a skilled management team that can demonstrate a long-term, above average record of delivering solid investment results with a sound investment process.  These companies tend to be less correlated to the general equity market than our Large-cap Core Equity portfolios.  The benchmark for performance is the Russell 2000 Small-cap Index.  Due to increased volatility and risk to principal, this portfolio strategy is suitable within the context of a broadly diversified portfolio.

International Equity
As with the Small-cap Equity strategy, we see the most efficient, cost-effective venue for participation in international equities to be Exchange Traded Funds (ETFs) for allocations of $5 million dollars or less.  For clients with needs above $5 million, we employ sub-advisers to assist in portfolio management.  As with domestic Small-cap Equity, we seek out sub-advisors with a skilled management team that can demonstrate a long-term, above average record of delivering solid investment results with a sound investment process.  International stocks tend to have higher volatility than domestic equities and have additional elements of risks, including currency and political. 

Tax-exempt Bond   
We are uniquely positioned to manage high quality municipal bond portfolios either as separate portfolios or in combination with our Tax-managed Equity strategy.  When used with our tax-managed strategies, we actively manage the performance divergences between the fixed income and equity markets to improve overall portfolio after-tax returns.  Our active management approach provides tax-free current income with a focus on attractive after-tax total return.  Portfolios are constructed in an optimized ladder of maturities with adjustments made to anticipate interest rate trends or to take advantage of beneficial trading opportunities.  The security selection process includes a fundamental analysis of the issuer, a review of the bond’s characteristics including call features, coupon, maturity and yield, reserve position, credit enhancement and investment grade ratings by one of the major rating agencies.

Taxable Bond   
The objectives of our taxable bond portfolios are to generate current income and add stability to an overall asset allocation program.  We analyze each client’s portfolio within the context of their unique objectives and structure portfolios taking into consideration credit risk, the shape of the yield curve and call structure.  To minimize interest rate risk, portfolios duration’s are limited to plus or minus 10 percent of the client-selected benchmark.  More manageable risks are assumed in client portfolios including:  sector risk (spread relationships between Corporate, Agency & Treasury securities) and yield curve risk.  To minimize default risk, we only purchase investment grade bonds.