Investing Strategy
“Core-and-Explore” Portfolio in Separately Managed Account
- Strategic Asset Allocation per individual risk tolerance
- Core portfolio consists of index funds, ETFs for broad market representation and diversification at lowest cost
- Explore portfolio actively managed with GARP Value Investing
- Ratio of Core to Explore fits portfolio goal, size, scope and tolerance for volatility
- Rebalancing based on performance and risk return expectations
Separately Managed Account Benefits
- Broad Asset Diversification
- Customization to Individual Needs
- Tax Efficiency
- Transaction Costs Savings
- Enhanced Return
Value-Based GARP Investing
- Use multifactor approach to bridge growth and value
- Growth: historical and projected rate, durability of growth, SCA (strategic competitive advantage), PEG (P/E to growth)
- Value: P/S, P/E, P/B, Dividend Yield, ROE
- Inject financial strength and margin-of-safety requirements
- Blend macro and micro analysis to find securities below the radar, fast, and cheap
- Find values in any market cap anywhere
- Scale in buys, no bet the ranch on a single company or theme
- Absolute return performance means holding cash at times
- Embrace cold, clear reality to treat volatility as opportunity