Our approach is conservative, but we aggressively seek investment opportunities that meet our measures of valuation and earnings growth. The majority of our equity investments will be in companies with positive long-term fundamentals, strong management, and good financial metrics.

 

We emphasize bottom-up stock selections but feel it is beneficial to incorporate views on economic and thematic trends to uncover investment opportunities. We often use a contrarian mindset and avoid investment fads.

 

We believe that objective selling is key. Our equity team carefully adheres to specific valuation parameters that help us determine when to take profits. Other sell indicators may include maturity of products, changes in senior management, increased use of debt, or slowing sales – all of which could signal a maturing or deteriorating business.

 

The result is a diversified portfolio of 25-40 stocks most of which have a market capitalization of greater than $5 billion.

Chief Investment Officer
Quarterly Commentary