The Opportunistic Growth Portfolio is perfect for those seeking investments that will provide greater potential for long-term capital gain.
At FMD Capital Management, we implement and consistently adhere to a clear and definable investment strategy for our clients. The primary objective of this portfolio is to seek low-risk, high reward growth opportunities in a combination of asset classes that shift based on market conditions.
We begin by dividing our portfolio into two main components: core and tactical positions. Our core holdings represent the primary exposure to stocks, bonds, or commodities that align with our primary portfolio objective and risk tolerance. From there, tactical positions are evaluated and established based on their technical or fundamental merits. Over time, the portfolio is designed to shift based on low-risk buying opportunities or high-reward selling opportunities, with cash designated as our primary interim risk management tool.
Our overarching macro analysis starts with an evaluation of the equity markets vs. its long-term price trend. This research allows us to identify areas of the market, foreign or domestic, that present good relative value. Depending on where the price is relative to this trend, we will seek to purchase funds that present optimal characteristics for positive returns.
Part of the active management in our strategy is to use macro themes to select areas of the market we believe will perform well over the short and long-term. Then, we overlay our core risk management philosophy which is grounded in a strong sell discipline to protect capital when market conditions are unfavorable.
For example, during bull market periods we seek to have a higher allocation to stocks and inflationary securities to take advantage of rising prices. Conversely, during bear markets or down-cycles, we shift our allocation towards fixed-income and cash to preserve capital. In a transitional or flat market we may have a more balanced weighting across all asset classes.
Exchange-traded funds are one of the primary investment vehicles we use to drive our growth strategy. These funds are typically very transparent, low-cost, diversified, and liquid. They give us the flexibility to move in and out of the market very quickly to capitalize on new opportunities, or protect our capital when stocks get volatile. They make for excellent trading vehicles as well as inexpensive core holdings.
The mutual fund investments we use in our Opportunistic Growth Portfolio allow our clients access to strategies that cannot be obtained using a simple index-based ETF. They usually encompass a more dynamic or sophisticated strategy that can enhance the characteristics of the overall portfolio. However, we always take risk management, liquidity, and overall fund expenses into heavy consideration before making an allocation to a mutual fund.
Our actively managed Opportunistic Growth strategy also allows us to fine-tune our asset allocation mix so that it can take full advantage of whatever the market throws our way. Each position is hand-picked and sized appropriately to ensure that it complements the other holdings in the portfolio.
The days of buying and holding stocks for the long-term are a thing of the past. In today’s volatile markets you need an active portfolio manager and clear investment strategy that is monitored daily. This ensures that you will never encounter a situation that you are unprepared for.
At FMD Capital Management, we are always prepared to avoid risks and seize opportunities for our clients. To learn more about our Opportunistic Growth Portfolio strategy and fees simply Contact Us today. Our minimums for this portfolio start at just $100,000.
In addition, we invite you to download our in-depth special report titled, The Opportunistic Approach to Growth Investing.