Investment Management
MackHouse firmly subscribes to the concepts of asset allocation and diversification of risk, and we pride ourselves on our track record of success. Specifically, we practice an integrated approach to Investment management. This means the integration of three separate but related disciplines of portfolio creation and implementation:
This means the integration of three separate but related aspects of portfolio creation and implementation:
Asset Allocation
The first discipline in our management style is to develop an asset allocation that reflects the investment plan of the client and reflects our interpretation of the overall markets. After developing the asset allocation, we then address the task of selecting individual securities for each portfolio.
Equities
The second discipline in our management style is the diversification of the equity portion of the portfolio. For the large capitalization portion of the portfolio, we accomplish this by diversifying among individual companies and across major industry sectors.
Our individual equity research is both fundamental and technically oriented. The fundamental analysis is based on the assessment of a stock’s investment return potential by evaluating its dividend and earnings outlook, while the technical analysis is to assess a securities price and volume patterns. The primary emphasis is on the identification of investment ideas that will contribute to superior investment results for our clients. Therefore, total return potential is the central criterion against which the company research results are measured. For mid and small capitalization securities, as well as international portions of the portfolio, we will use outside managers with expertise and experience in a given area. Here our evaluation criteria not only look at performance, but the tenure of the managers and how well they adhere to their investment style and strategy.
In addition, we establish price targets for every investment up front. Equities are evaluated when those targets are reached; the fundamentals change or more attractive opportunities are identified.
Fixed Income
The third discipline in our management style is the selection of the debt securities portion of the portfolio. Although we are not an aggressive bond manger; we do employ a management style that attempts to take advantage of the volatility of interest rates and bond prices. We gather information from a variety of sources – the issuer, capital markets analysts, and database and analytical systems – to find securities with the highest possible risk-adjusted return.
In summation, we employ an investment style that places a high premium on the following: identifying market and interest rate trends, investing in highly liquid quality securities, and most of importantly adhering to a disciplined strategy.
Account Types
MackHouse offers either a discretionary or non-discretionary investment account.
Under the discretionary investment account MackHouse is granted authority by the client to make portfolio and investment decisions on his/her behalf.
Under the non-discretionary investment account MackHouse is not granted authority by the client to make portfolio and investment decisions on his/her behalf.
Regardless of the investment model chosen, we want our clients to take a strong interest in the ultimate portfolio implementation. We believe it is in both the client’s and MackHouse’s best interest that the client be fully informed, fully engaged and fully educated on all investment decisions. After all, it is Your Life, Your Family, Your Legacy.