Portfolio Management Process
Graybill, Bartz & Associates employs a fundamental, research-driven approach to develop individual, diversified portfolios for our clients. This approach utilizes individual equity and fixed-income instruments to provide a balance between growth and income. The asset allocation of our portfolios varies over time based on opportunities in the equity and fixed-income markets and can be customized based on client circumstances.
 Our strategy in investing the equity portion of client portfolios is that of a fundamental growth stock investor. While we staunchly consider ourselves growth investors, we often go to great lengths to define what that means to us. Although our primary focus is on a company's ability to grow sales and earnings, we probably give more emphasis to non-income statement items than most growth managers. For instance, we like to invest in companies with strong balance sheets and significant cash-flow generation. Most of the companies we invest in have abundant cash and very little or no debt. This focus, in many ways, helps to define our strategy as much as the label of growth investor.
We also like to define the companies we invest in as quality companies. While many of the income and balance-sheet criteria described above can lead to quantitative measures of quality, we believe that measures such as consistency and predictability of results are just as important when making investment decisions.
Our equity holdings are comprised of core growth stocks, as well as smaller emerging growth companies. Core growth stocks are typically large-cap names. Many of these companies have been owned by our clients for many years and, sometimes, decades. Smaller names are typically faster growing but, also, more volatile. Companies in this category must meet the same quality criteria
described above while also occupying a leadership role in a unique market or industry niche. In both categories we take the approach of a business owner, seeking to make investments that we will own for many years. Additionally, we have utilized exchange-traded funds (ETFs) to gain international exposure for added diversification of client portfolios.
For new accounts, we utilize a disciplined approach to add securities to the portfolio over time (sometimes it could take up to one year). This allows us to add to positions at lower costs when, for example, non-fundamental market news temporarily drives a stock price lower.
We utilize several analytical tools and information sources available to large, institutional investors to track performance, monitor risk, and identify opportunities. These resources include a state-of-the-art Bloomberg Professional system and online research from major Wall Street firms.
Our portfolio management platform is Advent Office, the industry's premier enterprise investment management suite. Advent Office automates the entire spectrum of investment management functions from client and portfolio management to trading, reporting, reconciliation, and performance analysis.
Graybill, Bartz & Associates, Ltd., assumes responsibility for investment decisions. This entails: choosing specific stocks and bonds; allocating assets between stocks, bonds, and cash; and determining the timing of purchases and sales of securities. Moreover, we tailor the portfolio to the client's objectives and continually monitor risks and rewards. |
