Philosophy

Stock Selection Philosophy

Newbury Capital Management utilizes several proprietary research models and offers three different equity portfolios designed to meet an investor’s specific needs and risk tolerances.  The firm continually measures companies for sustainable financial strength, consistency of earnings and dividends, and a superior growth-to-risk ratio. In addition, we value qualitative factors, such as the business franchise, barriers to entry, industry position, and management quality. 

 

Selecting stocks for your portfolio is only half of the equation.  At Newbury, we spend equal time assessing an exit strategy on behalf of our clients.  Given the substantial systemic risk of the equity markets, the role of the modern portfolio manager must include the ability and latitude to raise cash, reduce sector exposure, and introduce hedging tactics to safeguard your assets.

 

Bond Investment Philosophy

Bonds are an integral part of an investment portfolio and allocation strategy. Because bonds typically provide a predictable income stream and predetermined maturity, many investors buy bonds to preserve capital, increase capital, or to receive interest income. The latter attribute is particularly attractive for investors who are in or near retirement and seek investment income to replace working income.

 

One of the more important measurements of a bond’s safety is its creditworthiness, or the level of comfort an investor has with the issuer’s ability to pay both interest and principal on a timely basis. Newbury Capital Management maintains a strict discipline to buy only investment grade bonds for portfolios that specify individual bond securities. For diversification, some of our tactical bond portfolios will own non-investment grade bonds or other asset classes through bond mutual funds.