:: Investment Management Services
- Equity
Management
- Balanced
- Fixed Income
- Tax Efficient Investing
- Fees
- TCM Brochure
Equity
Portfolio Management
Equity management is the implementation of
our stock selection process against a client's
return objectives and risk profile. In order
to mitigate individual stock risk, we create
a diversified portfolio of holdings across
industries.
While we concentrate on large
companies, we selectively populate our portfolios
with medium and smaller companies where client
circumstances and objectives warrant. Our
goal is to generate higher returns by selecting
companies with the potential to rapidly grow
their business for the foreseeable future.
By owning companies we believe could be tomorrow's
leaders, we strive to generate high returns,
despite possibly higher volatility in the
near-term for our more aggressive clients.
Given our valuation discipline,
we are likely to be contrarians as we build
investment positions. Our goal is to use market
and individual stock volatility to our advantage.
A company's fundamentals and valuations determine
the attractiveness of a stock over the long-term.
Balanced
Portfolio Management
While equity investments outperform fixed
income strategies over long periods of times,
a balanced portfolio offers clients a higher
current yield and less volatility. A balanced
portfolio contains both stocks and fixed-income
securities chosen in a mix appropriate for
the client's need for capital preservation,
cash flow (taxable or non-taxable) and growth.
For income-oriented clients, a balanced portfolio
enhances overall portfolio yield.
When establishing a balanced
portfolio we will generally establish a median
equity allocation between 40-60% for a client
whose primary goal is income and capital preservation
and 60-80% for a client whose primary goal
is growth and appreciation.
Fixed
Income Portfolio Management
Fixed Income Portfolio Management can be provided
as a stand-alone service or as part of a balanced
portfolio. We emphasize preservation of capital
and principal stability in our fixed income
management strategy. To further enhance the
stability and strength of the portfolio, we
concentrate on higher quality bonds that carry
investment grade ratings. We avoid lower rated
bonds, especially in the high-yield or so-called
"junk" area.
Our numerous contacts in the
fixed income community allow us the opportunity
to search out and find bonds that fit our
clients' specific portfolio needs. We also
utilize these contacts in order to find good
prices in a very inefficient market.
Tax
Efficient Investing
Tradition Capital Management manages client
assets with an awareness of taxes. We explicitly
recognize that managing taxes is an important
component to taxable accounts such as personal
assets, trusts and partnerships. Since we
focus on investing versus trading, our capital
gains are almost always long-term, which are
entitled to favorable federal tax treatment.
Tradition Capital Management works with clients on concentrated positions arising from low cost basis stock or stock options. Risk, taxes and potential returns must all be evaluated in order to make an informed decision. Our expertise in business analysis can also be utilized to assist in evaluating a privately or closely held enterprise.
We also like to talk with clients
about gifting highly appreciated securities
in order to fund charitable donations and
thus avoid paying taxes on the appreciated
securities. Charitable giving of appreciated
securities helps avoid some taxes; however,
gains are often larger than targeted levels
of charitable giving.
While our focus is on after-tax
returns, incorporating sound tax management
into the investment process helps minimize,
not eliminate taxes. If strong investment
results are achieved, taxes will need to be
paid.
Investment Management Annual Base Fee Schedule
Our fees are based on assets under management.
The rates below are annualized rates, billed
quarterly at the beginning of the quarter
that services are rendered, with a minimum
annual fee of $10,000.
1.00% on the first $2,000,000 of assets managed
0.80% on the next $3,000,000 of assets managed
0.50% on the next $15,000,000 of assets managed
0.30% on assets over $20,000,000
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