Growth Strategies

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Whitwell & Co. manages six distinct investment strategies: Moderate Growth, Total Growth, Large Cap Quant Growth, Small Cap Quant Growth, American Value, and Downside Protected Equity Growth. Each is designed for different goals, risk tolerances, and time horizons.

Different goals often live in different accounts. A client might have one bucket dedicated to long-term growth, another reserved for shorter-term needs, and a third earmarked for a specific objective. When that is the case, we assign each strategy at the account or bucket level, matching it to the objective that account is meant to serve. Clients with multiple objectives often run several of our strategies side by side, each one chosen because it fits the goal of the account it sits in.

Moderate Growth Strategy

Objective: to pursue long-term returns comparable to the S&P 500 while seeking to reduce downside risk. Implementation: liquid ETFs across all asset classes but only seven (7) at one time. Daily liquidity. Key risk is stock market risk; returns depend on how various assets in the strategy interact with prevailing market conditions. Invests in more than just equities: rates, credit, commodities, metals, and international. Seeks positive returns regardless of market direction via an "all asset" and "risk on / risk off" approach and being an actively managed strategy, it is rebalanced monthly. Requires a minimum five year holding period.

Total Growth Strategy

Objective: to pursue long-term growth, seeking returns above those of the S&P 500 over the holding period, net of fees, while aiming to keep downside risk at or below that of the S&P 500. There is no assurance these objectives will be achieved. Implementation: 10 stocks that are rebalanced four or more times a year. Recommended horizon is ten years; liquidity is daily. Risk is materially similar to the S&P 500 but the goal is a substantially lower ulcer index than the S&P 500.

Large Cap Quant Growth Strategy

Objective: to pursue aggressive long-term growth, seeking returns above those of the S&P 500 over holding periods not less than ten years. This strategy can be characterized as aggressive growth and can be expected to experience greater and longer drawdowns than the Whitwell Total Growth Strategy. Implementation: 10 large-cap stocks. Rebalanced no less than once a year.

Small Cap Quant Growth Strategy

Objective: to pursue returns above those of the S&P 500. More aggressive than the Large Cap Quant Growth Strategy. This is a strategy for clients who can endure substantial price fluctuation in pursuit of long-term growth. This strategy is comprised of ten small-cap stocks that are trading at comparatively low valuations and requires a minimum ten year holding period. This strategy reconstitutes every February, May, August and November.

American Value Strategy

Objective: algorithmic stock investment strategy designed to pursue returns above those of the S&P 500 over a minimum time horizon of five years and to help protect capital by purchasing shares in companies at relatively low valuations (hence the term "value") and even then, only selecting from the companies that rank highest in terms of profitability. The strategy is based on principles of value investing popularized by Benjamin Graham and Warren Buffett, and specifically the idea of buying profitable companies at a discount to their intrinsic value and cash flow. This strategy is comprised of twenty-five (25) small-cap stocks and is reconstituted no less than once a year.

Downside Protected Equity Growth Strategy

This is a non-traditional strategy that seeks exposure to the S&P 500 with a defined level of downside protection, in exchange for giving up some of the upside. Like any strategy it carries risks, including caps on upside, the terms and creditworthiness of the underlying instruments, and the possibility of loss.

In a sense, it is similar to the return profile of a fixed-index annuity or life insurance investment account. This strategy has three primary benefits. First, it allows clients to get exposure to the U.S. stock market. Second, it seeks to limit downside risk over the holding period. Third, it is a liquid strategy. Minimum recommended holding period is one calendar year.

Which Strategy Fits Your Needs?

The right strategy depends on your time horizon, income needs, tax situation, and comfort with volatility. Schedule a call to discuss which approach aligns with your goals.

Who This Is For

Who this is for

Long-term investors who can commit to each strategy's minimum holding period, from five to ten years
Clients who want disciplined, risk-managed growth rather than chasing the hottest asset
Investors comfortable matching a specific strategy to a specific goal or account
Those who can tolerate meaningful drawdowns in pursuit of long-term returns

Who this is not for

Short-term traders, or anyone who needs the money within a few years
Investors who cannot tolerate drawdowns in the range of 35% to 50% (these are equity-market realities, not a function of how we invest. In the dot-com crash the Nasdaq 100 fell roughly -83% into its October 2002 low, and the S&P 500 fell roughly -49%; the S&P 500's deepest modern decline, about -57%, came in the 2007 to 2009 financial crisis. We aim to reduce drawdowns, not to eliminate the risk of equity markets.)
Anyone seeking guaranteed returns or a promise of beating the market

Risks, Costs, and What to Weigh

These are growth strategies; you should not invest unless you can tolerate maximum drawdowns in the range of 35% to 50%.
Each strategy carries a minimum holding period, from one year to ten years; selling early defeats the strategy's design.
Back-tested history illustrates how a strategy would have performed; it is not a promise of future results, and no specific return is guaranteed.
Different strategies suit different goals; the right choice depends on your time horizon, income needs, tax situation, and tolerance for volatility.

Key terms, in plain English

Drawdown: The decline from a strategy's high point to its low point before it recovers. A maximum drawdown of 40% means the value fell 40% from peak to trough along the way; it measures the depth of the dip, not the end result.
Ulcer index: A risk measure that weighs both how deep declines are and how long they last, rather than treating every price wiggle the same. A lower ulcer index describes a smoother ride to a similar destination.
Rebalancing: Periodically trimming and topping up a portfolio back to its intended mix as prices move, so no single position quietly grows into an outsized risk.
Reconstitution: Rebuilding a strategy's holdings from scratch against its rules on a set schedule, for example quarterly, so the portfolio keeps reflecting current candidates instead of drifting.
Index-linked ETF: An exchange-traded fund whose return tracks a market index with a built-in limit on losses over a set period, in exchange for a cap on the gain. It is the building block of the downside-protected strategy.

The Six Growth Strategies at a Glance

Whitwell & Co.'s six growth strategies at a glance.

Strategy	Objective	How it is built	Min. holding period	Risk orientation
Moderate Growth	Seeks to match long-term S&P 500 returns with less downside risk	7 liquid ETFs across all asset classes, rebalanced monthly	5 years	Lower volatility, all-asset
Total Growth	Seeks returns above the S&P 500 net of fees, with downside no greater than the S&P 500	10 stocks, rebalanced 4+ times a year	10 years	Equity-like, aims for a lower ulcer index
Large Cap Quant Growth	Seeks returns above the S&P 500 over 10+ years	10 large-cap stocks, rebalanced at least yearly	10 years	Aggressive growth, deeper drawdowns
Small Cap Quant Growth	Seeks returns above the S&P 500	10 small-cap stocks at low valuations, reconstituted quarterly	10 years	Most aggressive, large price swings
American Value	Seeks returns above the S&P 500 using value screens	25 small-cap stocks bought at low valuations	5 years	Value-oriented
Downside Protected Equity Growth	Seeks S&P 500 exposure with downside protection, in exchange for capped upside	A monthly ladder of index-linked ETFs, one added each month, each on an annual reset	1 year	Capital-protection focus, capped upside

Each entry is a stated objective, not a guarantee; all investing involves risk of loss and there is no assurance any objective will be met.

Frequently asked questions

What investment strategies does Whitwell manage?

Six distinct strategies: Moderate Growth, Total Growth, Large Cap Quant Growth, Small Cap Quant Growth, American Value, and Downside Protected Equity Growth. Each is designed for different goals, risk tolerances, and time horizons.

Can I use more than one strategy at once?

Yes. Because different goals often live in different accounts, we assign a strategy at the account or bucket level. Clients with multiple objectives often run several strategies side by side, each chosen to fit the goal of the account it sits in.

What is the minimum holding period?

It varies by strategy, from a one-year minimum for the Downside Protected Equity Growth strategy to ten years for the Small Cap Quant Growth strategy. Matching your time horizon to the strategy is essential.

How much downside should I expect?

You should be prepared for drawdowns in the range of 35% to 50%. For context, historical drawdowns in the S&P 500 and Nasdaq 100 have been as large as 50% to 80%.

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