Using individual issues of marketable securities in traditional stock and bond portfolios provides customization, flexibility, and maximum investor control. Portfolio selection is your objective focused, based on managing your portfolio risk and return profile through industrial sector, market capitalization and foreign exposure diversification.
Securities are selected individually for your unique portfolio using a combination of traditional and fundamental investment tools and analysis.
Using portfolios provides customization, flexibility, and maximum investor control. Portfolio selection is your personal needs driven, based on managing the portfolio risk and return profile through industrial sector, market capitalization and foreign exposure diversification.
Asset Allocation
An overall asset allocation is established based on your needs and finds the balance between the risky and less risk asset classes.
Industrial Sectors
To add another layer of risk diversification, the industrial sector proportions of the portfolio are weighted according to S&P500’s sector weights
Equity Selection
SCM uses a three factor screen on the stock universe to whittle your individual issue selection down to a manageable size of one hundred, designated our Followed List. The factors in the screen are management quality, market leadership and an expanding industry. This Followed List is monitored and analyzed for an extended period of time before adding positions. Only the strongest stocks in each sector are used with the brightest industry prospects on a relative basis. Once the original assumptions for your stock purchase have changed and another stock outside the portfolio is expected to add more value, a trade is made.
Fixed Income
The superior characteristics of individual issues of bonds in terms of principal and interest rate risk management are well known. SCM constructs portfolios of primarily investment grade bonds and preferred stock with laddered maturities and staggered pay periods.
Cash Equivalents
Money market funds are the primary vehicles for keeping funds liquid but other instruments such as US Treasury Bills and commercial paper are available.
Foreign Exposure
Most of global wealth is based outside the US. SCM taps into the return opportunities around the world while using this exposure as a risk modifier by allocating a portion of the portfolio to global ETFs. These ETFs invest in blue chip companies in developed and developing markets.
