At the base of all of our investments is the goal of appreciating the capital of our clients and their families. You may be able to achieve appreciation by primarily investing in common stocks of historically sound companies that have demonstrated consistent earnings growth. We recommend that investors hold these companies for as long as they continue to demonstrate growth and meet certain levels of performance and valuation criteria.
The Bartolomeo Capital Group investment philosophy is based on the premise that the stock market allows investors to benefit from advantageous opportunities to buy companies with long-term earnings potential at prices that we believe are affordable relative to the prospects of earnings.
Portfolios are developed to meet the client’s specific risk tolerance and investment objectives while taking into consideration his or her long-term expectations. Core portfolio holdings are targeted at companies that have demonstrated, and we believe could continue to demonstrate, an ability to generate cash flow, earnings, and dividend growth rates at an accelerated pace than comparative stock indexes. Fundamental analysis and strict financial criteria are used to select and monitor core holdings. Turnover is typically very low for this portion of the portfolio.
In an effort to enhance performance, the portfolio may be comprised of additional companies whose earnings are impacted by the economic climate. Statistical methodology may employ a top-down approach to select candidates to be bought and sold. This approach relates a company’s stock price and momentum of earnings to those of similar companies in the current market. Target prices are used to trigger sales for potential gains, while stop orders may be used to help manage losses. This method is designed to increase the odds for success, as it attempts to remove the emotional components from the investment decision. Turnover in this portion of the portfolio will be higher than in the core holdings. Economic indicators, such as the direction of interest rates and currency values, may be used to determine which investment areas should be focused on.
To improve stability and increase cash flow, bond issues by corporations, the U.S. Treasury, states, and municipalities are also used according to investor requirements. When conditions warrant, bonds and fixed income may be used in an effort to improve portfolio total income while increasing protection.
Based on client risk tolerance and financial objectives, Bartolomeo Capital Group will initially employ one of three investment strategies that best fit the needs of the client. Aggressive Growth takes advantage of aggressive investment tactics using heavy allocation in growth categories in domestic and foreign markets. Through a combination of investments in companies with high capital growth potential and in funds that consist of such companies, this portfolio template’s main objective is appreciation. Moderate Growth seeks to provide capital appreciation and a moderate level of current income. Through a combination of investments in companies and funds with high capital growth potential and in funds that hold lower risk, this template aims for growth with more moderate volatility. Conservative Growth focuses on a semi-conservative investment approach that is blended with growth exposure in order to reach this aim. Through a blended combination of investments in growth categories and fixed income, this template attempts to provide growth while allowing for a focus in conservation. While accounts may take an initial architype at inception, all accounts will be individualized based upon the specific needs of the client.
Although clients will be initially placed into their properly fitting investment strategy, that template will be molded based on current market conditions, financial market environmental factors, and active global developments. At Bartolomeo Capital Group, we do not believe in “Set It and Forget It”. Our philosophy is that a blended approach of long-term investment holdings and short-term tactical positioning is the best approach to maximizing the pursuit of one’s future investment and planning goals. In the short run, market dynamics can be unpredictable, however over the intermediate and longer run, developments in markets tend to display many signs that precede market changing events and movements. We aim to utilize thorough research from various sources to fuel our investment insights, allowing us to properly position client accounts ahead of where we see movements occurring. As a result, our views may be contrarian at times. During extremes of market valuations and conditions, we may also allocate client accounts in ways that would not fit the category in normal times. For example, if we felt that markets were overvalued and due for a significant pullback, we would make the proper arrangements in all of our templates, meaning that even our Aggressive Growth clients would be more conservative than in normal times. Likewise, near the bottom of a market and at cheaper valuations, our Conservative Growth clients might be more aggressive than in normal times. Our goal is to maximize client returns in the long run given individual needs and circumstances. We believe that it is in our clients’ best interest to position their assets to take advantage of the current market environment and what we foresee occurring in the future. We are always actively looking for investment opportunities and to fine-tune our allocations.
Communication with clients is ongoing and frequent. In addition to monthly account statements, clients receive a personalized, comprehensive performance evaluation. The evaluation reviews asset allocations and highlights current and past account performance in light of stated guidelines, constraints, and objectives. In addition, the report calculates net cash flows, gains and losses, and may supply relevant benchmarks against which the client can further measure performance. Clients also receive periodic newsletter updates which explain investment strategies and the current outlook, as well as any other pertinent information to stay informed and up to date.
We favor frequent telephone contact and are available for periodic meetings at the client’s request.
Past performance is not indicative of future results, and there is no assurance that any investment strategy will be successful. Advisory accounts are not designed for excessively traded or inactive accounts and may not be suitable for all investors. Please carefully review our disclosure document for a description of our services.
As each account is individually managed, construction and ongoing management of portfolios may vary from those discussed in the firm’s investment philosophy. Investments and investment strategies contained are provided for informational purposes only. We need to review your individual situation before recommending appropriate strategies to you. Stocks offer long-term growth potential, but they may fluctuate more and provide less current income than other investments. Fixed income investments may be worth less than original cost upon redemption or maturity. Again, please carefully review our disclosure document for a full description of our services. Bartolomeo Capital Group is a licensed, fee-based wealth advisory firm.
As fiduciaries we act in your best interest. Our goal is to offer a holistic and enjoyable wealth planning experience to all of our clients. When you do well and are happy with our process, we succeed. We look forward to creating a nurturing and integral relationship with our clients and their families. When you are with us, you are a part of our family at Bartolomeo Capital Group.
