Portfolios

The Friedrich Focused Growth Portfolio

 The Friedrich Focused Growth portfolio is actively managed and more concentrated in fewer issues in order to optimize overall growth prospects. Each position will be monitored regularly. The number of additions and deletions may vary over time but we do not expect the portfolio to contain more than 20 issues. Only the best companies that meet the highest standards of our algorithmic analysis will be considered. Allocation between stocks and cash will be adjusted as needed to endeavor to balance capital preservation and grow prospects of the portfolio. The minimum initial investment per account is $100,000. Additional periodic investments to the same account can be as low as $50.  

The Friedrich Dividend Growth Portfolio

 The Friedrich Dividend Growth portfolio is actively managed and comprised of companies with strong prospects for consistently rising dividends and long-term growth. The portfolio seeks to provide a rising stream of dividend income from companies with consistently superior free cash flow generation. The minimum initial investment per account is $100,000. Additional periodic investments to the same account can be as low as $50. 

The Friedrich Aggressive Growth Portfolio

 The Friedrich Aggressive Growth portfolio is actively managed and comprised of the best companies that trade on the U.S. stock exchanges, regardless of industry, selected using our Friedrich algorithm. The algorithm focuses on analysis of free cash flow and offering the best value relative to growth prospects for the long term. This portfolio is designed to hold up to 50 positions adjusting allocations according between stocks and cash depending our projections of overall market valuation and the macroeconomic climate. Additions and deletions will be relatively few throughout the year though we will reassess the components monthly. This portfolio provides diversification while aiming for market-beating total return. The minimum initial investment per account is $100,000. Additional periodic investments to the same account can be as low as $50.  

The Friedrich Conservative Growth Portfolio

 The Friedrich Conservative Growth portfolio is actively managed and puts conservation of capital over growth. The portfolio is designed to contain up to 50 stock positions that are monitored regularly. Only those companies that meet our six primary criteria are considered including valuation based upon our proprietary free cash flow methodology. The minimum initial investment per account is $100,000. Additional periodic investments to the same account can be as low as $50.  Running a holiday sale or weekly special? Definitely promote it here to get customers excited about getting a sweet deal.

The Friedrich 150

 The Friedrich 150 folio active index is designed to compete with the S&P 500 Index with the Friedrich algorithm selecting one domestic company from each of the 150 industries that it projects to offer the greatest potential for growth. The Friedrich 150 folio active index will be monitored regularly to offer the highest potential quality per industry. Turnover is expected to be very low. The portfolio strives for better diversification and high overall quality of its components. The minimum initial investment per account is $100,000. Additional periodic investments to the same account can be as low as $50. The fund will remain 100% invested in equities. 

Coming Soon!

 The Friedrich Main Street Portfolio is our newest portfolio.  We are building it as we identify great companies at a price representing a good value.  The stocks in this portfolio have consistently traded in a narrow range relative to our estimated Main Street Price for at least ten years while posting superior results.  The minimum initial investment per account (total of all portfolios) is $100,000.  Additional periodic investments to the same account can be as low as $50.  Each position in this portfolio is initiated at 5% of the total with the remaining amount held in cash. 

Mission Statement

We build core portfolios designed to achieve the goals of each investor while using internally developed strategies to enhance portfolio income/performance and hedge against significant portfolio loss.

About Us

  

Mark Bern CFA is our founder and sole advisor at Bern Factor LLC. He is a former CPA (1990 -2017) and became a CFA charter holder in 2000. He is considered an expert in quantitative and qualitative analysis with experience in technical analysis. He has a deep interest in stock market history and holds degrees in Economics (BSBA) and Management Information Systems (MBA). He has been actively involved with investment analysis and investment management since 1985 but has been a student of investing since the 1960s. He owned his first individual stock position while still in high school. He is a student of Benjamin Graham and Warren Buffett. He has achieved a uniquely diverse experience from multiple careers. This has allowed him to develop a broad perspective enabling him to look at the big picture of macroeconomics all the way down to the detail of a retail unit or factory floor. He spent much of his youth in retail, then served two tours in Vietnam, including one in reconnaisance. He has been a blue collar, union worker in a factory and a manager in services, hospitality and transportation as well as a manager of professional staffs. He has more than 20 years of experience each in both the public and private sectors. He has developed personal points of reference that many analysts will never have. 

Investment Philosophy

Quality and Free Cash Flow

We concentrate all core portfolios on quality investments in companies that consistently generate superior free cash flow and financial results. Our experience has shown us that investments is such companies generally experience reduced losses during downturns, relative to the broad market indices, and rebound more quickly.


We have found that those companies consistently generating superior free cash flow have a higher probability of future growth than those that do not. We therefore analyze free cash flows above all other factors to ensure the quality of earnings and the resilience and strength of a company’s capital structure that enables it not only to endure but to grow.

Dividends

We focus on companies that consistently raise dividends to support those clients requiring current, or soon-to-be current, income. Our understanding of cash flows aids us in avoiding companies most likely to cut or terminate dividend payments and allows us to identify those companies most capable and likely to continue increasing dividends.

Enhancing Performance and Income

  We enhance portfolio income and performance (when appropriate and with permission of clients based upon individual risk tolerances and needs) with options strategies designed to benefit from market conditions. Our experience over more than three decades of investing and market analysis has revealed to us that specific options strategies provide better results under certain circumstances.


Hedging to Conserve Capital


Underlying everything we do is a keen attention to conserving capital. We endeavor to minimize major losses to portfolio value by using our unique hedging strategy whenever we perceive that market conditions warrant

Investment Insights

Gain insights on investing strategies and receive current publications.

Contact Us

700 Chinquapin Dr

Lyndhurst, VA 22952

Bern Factor

(540) 241-1963