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LONG-TERM OUTLOOK. OWNERSHIP PERSPECTIVE.

Proprietary Research

We assume a true ownership perspective with our proprietary investment research for each company we buy or sell. We construct our portfolios from the bottom up, one company at a time. Our value investment strategy drives us to seek a long-term outlook on a company’s growth. In this sense we see the world very differently than most investors. We regularly evaluate the companies we hold, and may decide to sell if the valuation rises to our estimate of what we consider the company’s intrinsic value, if the strategic direction of the company changes, or change within the company alters its growth profile.

Conversely, most retirement portfolios and the advisers who manage them rely on sell-side analysts who work for large brokerage houses that establish extremely short-term price targets for stocks that make up a mutual fund—typically six to twelve months. The one-year turnover rate for most large mutual funds that make up a client’s portfolio regularly exceeds 100 percent.  This means that every single stock within the mutual fund is sold within that time frame, generating expensive commissions with every trade and extremely short-term capital gains taxes that are passed on to the mutual fund shareholders. This trade-focused investment strategy is both costly to and hidden from shareholders.