Investment Strategy

Active Portfolio Management

Fundamental Analysis

We look at valuation multiples, profitability/liquidity and long term solvency ratios. We search for companies that have consistent free cash flow generation, so the company has capital to reinvest in operations for future growth. On occasion, we build discounted cash flow models to analyze a prospective business and see what the 5-10 year outlook is for a company. Once we build the operating model, we forecast projected free cash flows to discount back to a present value share price, which allows us to determine whether or not a company is worth investing in.

Technical Analysis

We look at indicators such as moving averages and long term pricing trends. Technical indicators drive short term movements in share prices and allow us to achieve the best possible share price for our clients. The 21, 50 and 200 day moving averages have tremendous influence on short term moves in share prices. These moving averages can act as a support to stabilize a share price from falling, or even a resistance which can prevent a share price from rising any further. When you use technical analysis it can explain pricing behavior and market psychology to better help our portfolio manager make a buy or sell decision.


When it comes to purchasing or selling options for clients, we analyze the options pricing model to determine the probability of a specific trade to end in favor of the client. An example would be when we sell a 2 standard deviation covered call option from the current share price, this means under 97.5% of probabilities this specific trade would end in the clients favor. Options pricing tends to be skewed to the put side, meaning put options are often priced for a large move to the downside because investors fear a large stock market crash. We capitalize on this put option skew by selling cash secured out of the money put options to collect theta and time premium for our client accounts.

Start With a Consultation

Every client is different and every investment portfolio has different needs. First, we must determine your risk tolerance to see what type of portfolio best meets your financial needs. Then we determine what your investment objectives are based on three criteria: investment income, speculation or conservative income strategies. After we determine which portfolio is appropriate for you, we create a tailored investment mandate/financial plan; which is a specialized document that guides the management of your portfolio.

Determine The Best Strategy

We manage different strategies for different financial needs. We create portfolios based on thematic investing narratives such as dividend paying companies, above normal free cash flow, high growth rates, real estate and value investing principles.

We buy a combination of stocks, bonds and ETFs, so that if one asset goes down in value, another could go up in value. The purpose of this strategy is to reduce overall portfolio risk. Every clients financial situation is different and no two risk tolerances are the same.

Tailor The Portfolio

Everyone is not created equal and your portfolio should be tailored to your investment and risk needs. We create an investment allocation that can help you acheive your financial objectives, while managing risk risk, to help acheive your financial goals.

We create the portfolio comprised of individual stocks, ETFs, option securities and bonds.

When creating the portfolio we analyze costs associated with certain ETFs and fund and then select investments that have a lower expense ratio.

Manage The Portfolio

We analyze client portfolios on a regular basis. When appropriate, we make buy or sell decisions that help our clients portfolios achive their financial objectives.

When we purchase and sell securities on behalf of clients, we trade on a discretionary basis. This means the financial advisor does not need to consult the client in advance of making a financial decision for the client’s portfolio. We may receive discretionary trading authority through a legal document called a limited power of attorney. This document permits our financial advisors to purchase or sell when we deem appropriate. We keep clients informed about their portfolios by communicating on a regular basis.

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