Our Process
Many investment strategies rely on diversified model portfolios, such as mutual funds. By investing along a theme, model portfolios become a "one-size-fits-all" pool, with very little (tax) control by the investor. Their diversification quickly leads to adding less desirable securities, which result in dilution rather than protection. In addition, when an investor holds multiple mutual funds, there is an increased probability there will be holding overlap. We do not believe that this is an effective response to investors` needs.
La Jolla Asset management Inc's systematic approach and flexibility from individualized portfolios are the keys to outperforming other investment strategies over the long-term. No short-term "trading vehicles" or derivatives are considered. Nor are foreign securities/investments, as we believe that the best domestic corporations already participate in the global marketplace, while providing the safest haven against economic, political and currency volatility.
The firm's process builds and monitors portfolios of coordinated securities that are expected to meet the goals of a specific client. Throughout a portfolio's life, each security held is continuously reviewed for changes in fundamentals that may require repositioning the investor's portfolio. Repositioning of securities is sensitive to tax consequences and maintaining a clients highest after-tax value.
A client’s relationship begins with the identification of the client’s investment goals and objectives, as they relate to time horizons, current (after tax) income desires, capital preservation requirements and risk preferences. This analysis allows us to allocate the client’s prospective portfolio(s) over our four (acceptable) risk profiles.
Prior to constructing a portfolio for a client, we first conduct an investment review/diagnostic for each perspective client to assist them in determining their Investment Objective and Risk Preference/Profile. Once the process is completed, we review the results with the client so that we can then develop an initial portfolio responsive to their goals and objectives.
Please go to the Process Summary Tab
Appreciation Portfolios
The goal of an appreciation portfolio is to protect and enhance the value, while maintaining the liquidity of the funds entrusted to our management. The company builds coordinated portfolios of individual securities, through our proprietary “Stock Selection Logic Model” (SSLM). The firm selects only highly liquid stocks found on the NYSE or NASDAQ/AMEX exchanges.
The SSLM is a rigorous and on-going screening process of company fundamentals and key technical aspects of the more than 9,000 domestically traded public stocks. As a result of this analysis, a few select companies become candidates for use in maintaining a client’s portfolio of 10-25 securities – depending on portfolio size, risk preferences and performance goals.
Growth & Income Portfolios
The objective of the Growth & Income portfolios is to provide a moderate level of income combined with long-term growth of capital.
To achieve this objective, portfolios are invested in a combination of stocks, convertible preferred stocks, convertible bonds, corporate bonds, and treasury securities. The capitalization of these companies is large to mid-sized with an emphasis on dividends to provide income. The companies are a mix of cyclical and long-term growth.
Income Portfolios
The goal of an income portfolio is to meet the current revenue reeds of a client and provide a modest level of capital appreciation. We monitor indicators, which may affect inflationary trends and the income requirements of our clients.
A high priority in selecting securities is liquidity and quality of the investment. We closely monitor the company’s competitive market position and revenues to ensure income payments and growth potential of the investment.
There are numerous factors that drive the fixed income decision process, including: income requirements, overall time horizon, and anticipated changes in future income requirements.