Our Approach to Equity Portfolio Management
At Stonebridge, we focus on designing an investment portfolio around your goals and objectives utilizing individual securities and/or funds, depending on your strategy.
Our goal is to maximize the long-term rate of return on invested capital while minimizing downside volatility. We take an ownership approach to equity management by investing in companies we would like to own long-term.
To achieve our goal, we invest in high-quality companies that we analyze utilizing a “Top Down, Bottom Up Approach” and acquire at attractive prices. We are tax-sensitive investors preferring to hold our positions indefinitely, assuming the fundamental competitive advantage of the companies in our portfolio remain intact. This allows value to compound by minimizing tax and transaction fees, producing long-term performance.
Core Equity Strategies That Shape Performance
In building your investment portfolio we may incorporate several different equity strategies depending on your specific goals and objectives.
Large Capitalization Growth Strategy: We seek companies that offer higher revenue and net income growth rates than other companies in their respective sectors. This allows for greater growth potential while minimizing downside volatility. We target focused management teams with a goal of sustainability in growing the business over our investment horizon.
Dividend Income Strategy: By focusing on dividend paying stocks, REITs, MLPs and preferred stocks when applicable, the strategy allows for potential asset growth while generating income. We target companies that offer growing dividend income with yields that exceed that of the S&P 500 Index. We desire a history or potential of consistent dividend payments and/or potential of increased payments.
Growth & Income Strategy: A blended equity approach utilizing our core large capitalization companies that offer both growth and dividend income. This serves to increase income generation while decreasing overall price volatility inherent in the equity markets.
Unique Investment Needs
Covered calls, concentrated stock positions and cost-efficient ETF’s are investment strategies we also utilize to meet unique objectives. We can also construct a portfolio for investors with specific guidelines or restrictions including:
- Socially Responsible Investing
- Environmentally Safe Investing
- Faith Based Investing
- Corporate Governance