"In this business, if you're good, you're right six times out of ten. You're never going to be right nine times out of ten."
Peter Lynch
SWCM’s method 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. In addition we utilize a concentrated portfolio strategy. A fully funded portfolio will have between 20 – 25 investments.
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.