Approach

Our Investment Approach

A Proprietary Tactical Investment Process

From the expertise of our multidisciplinary team, we’ve developed a tactical investment process that is both flexible and adaptive. Our team combines a top-down macro view of the markets with bottom-up fundamental research in order to pursue opportunities in shifting climates, as well as help protect our clients’ assets.

For each client, we construct a custom investment strategy that incorporates a suite of core portfolios designed and managed in-house.

SWM Portfolios

Stock Portfolios
  • SWM All Cap

    Our focus is to invest in quality companies with competitive advantages and the potential for sustained superior growth, focusing on high returns on capital and earnings growth. We seek to invest in companies with a durable earnings profile driven by a sustainable competitive advantage, superior financial strength, and proven management teams.

    Rooted in fundamental analysis and confirmed through technical analysis, our focus is on selecting approximately thirty portfolio holdings that meet our objective. Because of the technical analysis overlay that we employ, the portfolio may increase its cash allocation during periods of heightened volatility or what we define as “protect mode.”

  • SWM Dividend Growth

    Our focus is to invest in quality companies with competitive brand positioning, solid balance sheets, consistent dividend, cash flow, and earnings growth. Our goal is to produce an attractive and rising income stream along with capital appreciation. Rooted in fundamental analysis and confirmed through technical analysis, our focus is on selecting approximately thirty portfolio holdings that meet our objective. Because of the technical analysis overlay that we employ, the portfolio may increase its cash allocation during periods of heightened volatility or what we define as “protect mode.”

    Over time, dividends have made up a substantial portion of the total return of the S&P 500. We feel that dividend income provides a distinct advantage when fixed-income yields are low, the inflation outlook is uncertain, and the broader market is volatile. In addition, dividend-payers tend to be less volatile and outperform non-dividend-paying stocks over the long term.

  • SWM Growth and Income

    Our dual mandate focuses on investing in quality growth and dividend-paying companies. We seek companies with a proven track record and strong potential for sustainable future growth in revenue, earnings, and free cash flow. Attractive dividends are an essential part of the portfolio, but we will also invest in companies that choose to reinvest cash flow into growth opportunities or share repurchase activity. Rooted in fundamental analysis and confirmed through technical analysis, our focus is on selecting approximately thirty portfolio holdings that meet our objective. Because of the technical analysis overlay that we employ, the portfolio may increase its cash allocation during periods of heightened volatility or what we define as “protect mode.”

  • SWM Macro Advance and Protect

    The SMG Macro Advance and Protect Strategy is designed to allocate up to five equity funds, four fixed-income funds, and a cash component for a total allocation across 10 different asset classes. The top-level macroeconomic model determines the appropriate equity and fixed-income allocation, relying on an analysis of leading economic indicators, relative strength and market breadth indicators, second-level indicators, and a ranking system to determine the equity allocation and fixed income baskets. While unlikely, the model could allocate 100% to cash or any single asset class. The Strategy is reviewed monthly to determine if any changes should occur. The Strategy is actively traded and could lead to less favorable tax treatment of investment gains. As such, this Strategy is recommended for tax-deferred accounts.

Tactical Focused
  • Core

    The Core portfolio invests in cost-efficient Exchange Traded Funds (ETFs) to complement our stock portfolios by providing broader diversification of asset classes and sectors.

    Investment Philosophy
    We study macroeconomic factors and technical analysis, which focuses on evaluating trend, price, and relative strength to identify what we believe to be favorable investment opportunities. We evaluate market activities and rotate the portfolio to specific investment themes, which we believe offer the strongest potential for price appreciation. We attempt to control risk by underweighting or removing exposure to markets exhibiting negative price trends and evaluated risk. As a result, the Tactical Focused Core Portfolio can hold most of its investments in a single asset such as U.S. Equities, Foreign Equities, or Cash. It could also concentrate on certain broad or micro-sectors such as Technology or S&P Oil & Gas Exploration & Producers, as an example. The Tactical Focused Core portfolio can be less diversified than a traditional allocation portfolio.

    The Core portfolio is rebalanced monthly or opportunistically.

  • SWM Growth and Income

    Our dual mandate focuses on investing in quality growth and dividend-paying companies. We seek companies with a proven track record and strong potential for sustainable future growth in revenue, earnings, and free cash flow. Attractive dividends are an essential part of the portfolio, but we will also invest in companies that choose to reinvest cash flow into growth opportunities or share repurchase activity. Rooted in fundamental analysis and confirmed through technical analysis, our focus is on selecting approximately thirty portfolio holdings that meet our objective. Because of the technical analysis overlay that we employ, the portfolio may increase its cash allocation during periods of heightened volatility or what we define as “protect mode.”

Allocation Focused
  • The Allocation Focused portfolio invests in cost-effective Exchange Traded Funds (ETFs) to complement our stock portfolios by providing broader diversification of asset classes and sectors.

    Investment Philosophy
    The Allocation Focused portfolios take a longer-term view of market conditions and drivers, focusing on diversified target allocation among asset classes, but adapt to changing macro conditions. The Allocation Focused portfolios have target allocations ranging from 100 percent equity to 100 percent fixed income. The Allocation Focused portfolios’ goal is to focus on investor risk profiles (conservative, moderate, aggressive). Unlike our Tactical Focused portfolios, the Allocation Focused portfolios maintain their target focus within tightly defined constraints.

    The Allocation Focused portfolios are rebalanced opportunistically.

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