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.
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.
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.