Invested almost exclusively in dividend paying stocks, the portfolio provides increasing dividend income over time, long-term capital appreciation, and reasonable current income. Preservation of capital is also an important consideration with a Beta score traditionally well below the benchmark. The portfolio invests in small, medium, large companies (domestic and international) with growth rates above 10% annually. Ideal candidates will have long histories of uninterrupted dividend payments, as well as a growing yield based upon the underlying company’s ability to generate free cash flow and the Board’s willingness to pay to shareholders. Risk is managed through diversification, adherence to a well defined sell discipline, and hedging tactics through the use of risk management securities.
The portfolio’s investment objective is long-term growth of capital with global exposure to capture growth both domestically and abroad. The portfolio seeks to achieve its objective by investing primarily in the common stocks of globally diversified, financially strong, well managed companies that offer above average growth prospects at reasonable/attractive valuations. The portfolio is broadly diversified across geographic areas, economic sectors, industries, and companies. Up to half or more of the portfolio may be invested in foreign stocks. Risk is managed through diversification, adherence to a well defined sell discipline, and hedging tactics through the use of risk management securities.
Seeks long-term growth of capital by investing primarily in the common stocks of financially strong and well managed medium to large companies that are leaders in their respective industries. The portfolio may concentrate holdings in sectors of the market and companies within market sectors that it believes possess both superior fundamentals and growth prospects for the longer term. The portfolio has a long-term view to investing with relatively low turnover. The companies must have growth rates above 15% annually. As such, the portfolio may exhibit greater volatility than the benchmark particularly in periods of economic uncertainty. Risk is managed through diversification, adherence to a well defined sell discipline, and hedging tactics through the use of risk management securities.
Focus Mutual Fund Portfolio
The portfolio manager seeks to achieve long-term growth of capital by investing in an asset allocation model comprised of high quality no-load mutual funds. Several thousand funds are screened through a proprietary process that searches for funds that consistently deliver the best risk-adjusted returns versus their peers in all market conditions. Secondary considerations are turnover rates, operating expenses and management tenure. Portfolio manager utilizes Modular Portfolio Construction to incorporate additional non-correlated asset classes to further reduce risk and/or enhance return. These may include hedged, commodity and/or alternative asset class mutual funds.
Bonds are an integral part of an investment allocation strategy. Bonds typically provide a predictable income stream and pre-determined maturity which makes an ideal investment to preserve capital, increase long-term capital, or to receive current interest income. The latter attribute is particularly attractive for investors who are in or near retirement and seek investment income to replace working income.
The portfolio manager will continually measure and monitor a bond’s creditworthiness. This important analysis will gauge the 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, tactical bond portfolios will own non-investment grade bonds or other asset classes through bond mutual funds.
Investment in municipal bonds is preferable for investors in higher tax brackets. However, not all municipal bonds are equal and special attention is paid to determine the ability of the issuing municipality to pay the ongoing interest and principal at maturity. In addition, municipal bonds from various states will be considered, dependent upon the state of residency of the investor to obtain the optimal after-tax portfolio yield. In some cases, a multi-state strategy will be implemented to gain exposure to issues through the U.S.
The Decathlon Fund is a limited partnership hedge fund for accredited investors and requires a minimum investment of $500,000. The fund employs a long-short equity strategy to create a low correlation to the S&P 500 Index. The Decathlon Fund is a low-risk core strategy or is suitable as a low-correlation compliment to a traditional long-only stock portfolio. Risk is controlled through in-depth research of company and sector fundamentals. Maximum long exposure is 100% and maximum short exposure is 50%. The fund maintains 50-70 positions, with a maximum position size of 5%.