Stock
Investment Strategy
Utilize
cutting edge securities
W&M is unique. We are experienced Exchange Traded Fund
(ETF) active managers. ETFs offer superior opportunities and
efficiently deliver low cost, liquidity, and diversification.
ETFs are portfolios of stocks, bonds or managed futures that
mimic hundreds of different indices such as the S&P 500.
They are designed to move in the direction of the particular
index or opposite it.
Investor portfolios may be constructed with large, mid, and
small capitalization stocks and ETFs. Styles may be tilted
toward value or growth. International market investments may
be accessed. An ETF may utilize put and call options. Investments
also may be made in alternative economic sectors such as gold,
real estate, commodities and energy, and in specific industries
such as technology and healthcare.
We endeavor to identify business cycle, market, sector,
industry, style, and capitalization trends that may provide
opportunities for gain or that may limit
downside risk.
Other factors also may impact returns positively and negatively.
They include investment timing decisions, geoplitical events,
the ETFs selected, their individual performance, and portfolio
asset allocation.
Dependent upon our perceptions, trading activity may be relatively
dormant for extended periods of time or suddenly may become
quite active. ETF positions may be concentrated with large
positions in one or more ETFs as a percentage of portfolio
or total equity assets. When done, that may increase or decrease
risk. Potentially any ETF perhaps risky in itself may be purchased
with the expectation that it may offset another ETF to which
it may have a low correlation in a volatile market, thus a
“loose” hedge. However, that hedge may or may
not be effective and the directional long/short weighting
of the overall portfolio may or may not be correct.
Bond
Investment Strategy
Research
based decision making
Buy, sell, and hold decisions are derived from one principal
concept above all else, preserve overall portfolio capital.
We endeavor to identify inflation and interest rate trends. Utilizing
a broad range of economic data and external analyses, we make
internal forecasts that guide our bond positions.
The decision making process is research based and deliberative.
The driving force is value. Value to us begins with an emphasis
on risk management and current income in evaluating opportunities
presented by changes in the yield curve.
As interest rates increase, maturities may be shortened. As
interest rates decline, maturities may be lengthened. Bonds
purchased usually are A rated or better. Most often they will
be intermediate term.
However, bond ETFs usually are utilized.
Cash Investment Strategy
Cash
is an earning asset
Cash is actively invested as a significant asset class in our
strategies.
When we think that stocks or bonds may offer better opportunities,
cash positions
may be substantially reduced. Regardless, large
cash positions may be maintained.
Individual short term securities, including commercial paper,
may be purchased;
however, money market fund investments most
often are made.
Sell Strategy
Losses
are curtailed
Losses may be difficult to make up without great risk.
Appreciated security positions often are reduced or sold before
losses reach ten percent of the original investment amount.
We think that avoiding significant mistakes is a key to long
term investment success. No matter the cost basis, a ten percent
loss may trigger a complete position sale unless we see extenuating
circumstances. Hedged and inverse positions often override
all criteria.
Third Party Portfolio Management
Alternative strategies
There may be times when greater risk or alternatives are desired
for the opportunity of higher returns or when another investment
style may enhance portfolios. In such instances, W&M can assist with due diligence, manager
selection, portfolio structure, and continuing performance
review.
Should you prefer investment decision making or portfolio management
by a selected third party (someone other than W&M), the
investment policy, and the fee and service structure will vary.
Utilizing third party managers or advisers
representatives for portfolio management who do not follow
the W&M investment
process present a different set of risk and return alternatives
for which W&M does not accept fiduciary responsibility.
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