Our Investment Philosophy
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
SWCM’s philosophy of selecting securities utilizes a combination of fundamental and technical analysis, using a value based bottom up approach. We begin by developing a macro thesis on the current and future prospects of the U.S. economy and its related markets. This macro thesis employs a valuation approach to the S&P based on yield, growth, and earnings of the index.
Our micro thesis (bottom up) approach relies on rigorous research from both internal and external sources. SWCM’s equity thesis is a value approach seeking growth of capital by owning a focused portfolio of securities that are undervalued and holding them for their long-term appreciation. Buying stocks below expected long-term fair or intrinsic value due to temporary conditions should yield superior returns with a margin of safety, resulting in lower risk. Our value based approach is used to purchase any and all investment opportunities. We don’t use funds as an investment vehicle. We purchase securities across all market capitalizations and investment parameters. All client accounts are seperately managed to outperform your long term goals and expectations. At SWCM we are long term investors. The short term orientation of most institutional investors creates opportunity for long term investors.
Individually Managed Accounts
An individually managed account is a portfolio of businesses chosen by the portfolio manager to achieve a specific objective; long term total return. You, the client, maintain command and control of the account and own in whole all of the securities in the portfolio. Ownership allows you to manage the type of securities purchased, as well as the tax concerns and consequences due to capital gains and losses. At no time do we outsource your portfolio to mutual funds or third part fund managers. Your assets and investments stay in your account and are never commingled with other client accounts. By maintaining this autonomy your portfolio is better situated to outperform with a lower fee base. The client works with a professional portfolio manager developing a personalized investment strategy, receives quarterly reports and pays one single fee for investment advisory services.
Progressive Money Management
“Progressive Money Management” is constantly and actively reviewing all accounts for changes in your personal financial condition and or objectives. We base our reviews on valuation of securities owned, asset dedications, and stocks selected and then determine and execute the necessary changes to each portfolio. Valuation parameters determine the proper time to enter the equity or fixed markets and are utilized in determining the asset dedication strategies we employ. We will not hesitate to make shifts into different markets and/or securities when the valuation parameters change or with any change to your financial situation.
The result is a more personalized, higher quality portfolio designed to deliver consistent returns and a greater chance of achieving your financial objectives.
At SWCM we don’t use asset allocation to build clients portfolios. Asset allocation is really a form of market timing. We don’t practice market timing in fact we look at the equity market as a place to buy the stock of companies we find attractive. We practice asset dedication. Asset dedication is the practice of making an investment and applying a percentage of that investment to your portfolio based on your needs and objectives.