TCVA Global Value Portfolio

Investor Profile:

  • More conservative investor
  • Shorter time horizon
  • More focused on income and capital preservation
  • Investing with a built-in margin of safety, trading at a discount to Fair Market Value
  • Typically pay dividends
  • Slightly lower risk tolerance compared with that of a growth investor
  • Good for any type of account

Description:

Our Value Strategy, which has been our flagship equity style for over 10 years, has provided an investment niche which most money managers no longer offer. Value portfolios seek stocks of companies that are believed to be undervalued or priced below their intrinsic, long term value. The TCVA Value portfolio is a multi-capitalization and multi-style portfolio where approximately half is comprised of Large Cap Value oriented stocks. The selection of individual securities is designed to produce a higher yield while providing lower levels of portfolio volatility verses the broad market. Investing in companies with high quality fundamentals, strong competitive positions, consistent earnings and dividend growth rates produces a portfolio with reduced market risk and consistent performance. The strategy is designed to be conservatively positioned, utilizing stocks which cover all ten of the S&P500 sectors and are even further diversified across multiple industries within each sector. For example, within the Health Care Sector, selected companies include medical devices, pharmaceuticals, biotechnology firms and health management. To further enhance equity diversification, the Value Strategy incorporates additional asset classes which take advantage of shifting strategies in the market. Exposure to Small-cap and Mid-cap companies is achieved through the use of Exchange Trade Funds (EFT’s). An ETF, which is basket of stocks, tracks a specific market index and allows the portfolio to achieve adequate diversification and exposure to sectors and asset classes at a lower cost than other options. In cases where the weighting of an asset class is too small to diversify properly using individual names, this is the ideal investment vehicle. In the Value Strategy, in addition to Small and Mid-cap allocation, the portfolio maintains exposure in Real Estate (both domestic and international), International and Emerging markets, and Commodities. Value is enhanced by adjusting the sector and asset class weightings to take advantage of changing market conditions. This strategy is ideal for the more conservative investor who still needs exposure to the equity markets, but would also like to generate income without taking undue risk.