Client portfolios typically represent a combination of two primary investment strategies: our Diversified Sector Program and our Fixed Income Sector Program. By utilizing a single strategy or blending the two, we tailor each client portfolio to reflect your individual goals, time horizon, tolerance for short-term risk, need for liquidity, and other needs.

Diversified Sector Program – Most client portfolios are invested according to this strategy. Our Diversified Strategy was created nearly 30 years ago by Clyde Kendzierski to manage his personal retirement funds. The goal of the Diversified Sector Program is to outperform the S&P 500 Index over the long term with less short term volatility. It is based on “The 70% Solution,” an investment strategy that aims to capture 70% of the gains in a rising market and avoid 70% of the losses in falling markets. Investments are diversified among industry, international, and fixed-income sectors through primarily no-load mutual funds and ETFs. Investments are rotated among a mix of 5 to 12 sectors. Unlike market-timing strategies, a portion of the portfolio is always invested in some sector, although a significant portion of the portfolio may temporarily be in money market funds. This portfolio is an ideal core holding for investors seeking growth and willing to accept moderate, short-term volatility.

Fixed Income Sector Program - This strategy seeks to outperform the Lipper Average of U.S. Bond Funds, with minimal risk of loss. It invests in mutual funds and ETFs comprised of securities that generate current income from dividends or interest payments. Returns are usually higher during years when interest rates decline and lower when interest rates are rising. This portfolio is suitable for retirees whose other sources of income are limited. More conservative portfolios such as this are more stable, but the potential return is more limited.

Both the Diversified and Fixed Income approaches rely on value-based strategies to identify the best mix of eligible sectors for investing and produce the best risk-adjusted returns. At the time of purchase, these sectors are generally out of favor with other investors. Once the sector is “discovered” and the influx of new investors push the price up, we look for a place to take profits and rotate into a sector that is more reasonably priced. Our advisors choose sectors based on a long-term valuations but use short-term price swings to increase positions, collect profits, or reduce exposures.