Growth Strategies

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: equal the long-term returns of the S&P 500 but with measurably less 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: generate returns that exceed those of the S&P 500 over the holding period, net of fees, with downside risk less than or equal to that of the S&P 500. 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: generate investment returns that measurably exceed those of the S&P 500 over long-term 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: returns that measurably exceed those of the S&P 500. More aggressive than the Large Cap Quant Growth Strategy. This is a strategy for clients that can endure substantial price fluctuation and are seeking rates of return that substantially exceed those of the S&P 500. 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 generate returns in excess of the S&P 500 over a bare minimum time horizon of five years and to 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 unique non-traditional strategy that allows clients to obtain exposure to the stock market S&P 500 with no downside risk. The cost is that you are giving up some of the upside.

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 protects clients against downside risk. 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.