The Patrumin U.S. Multicap Equity Strategy is our portfolio of best ideas. We construct this portfolio with U.S. stock investments that meet our rigorous, analytical, fundamentally-driven research process. The strategy’s goal is to be balanced across the capitalization spectrum–with exposure to smallcaps, midcaps and largecaps. The weighted average capitalization for the strategy is generally over $20bb, reflecting this diversification*.
The Patrumin U.S. Smallcap Equity Strategy** is a concentrated portfolio of smaller U.S. stocks. We generally hold 40-to-70 stocks to leverage our bottom-up, fundamental research approach. The Patrumin U.S. Smallcap Equity Strategy invests in small companies, typically those with equity market capitalizations below $4B. Patrumin employs an opportunistic approach that does not emphasize any one investment style, like growth or value. Our diversified portfolios are constructed with stocks from multiple sectors of the economy, which may experience varying rates of growth. We also look to invest in companies we believe are undervalued relative to their earnings and cash generating potential. We are especially attracted to companies which have products or services that fundamentally change the spending behavior of consumers or their business customers.
The Patrumin U.S. Dividends Plus Select 25 Equity Strategy is a specialty product we created due to persistent customer requests and inquiries. Because of two powerful demographic trends: 1) the aging of America’s baby boomer population and 2) the ever-increasing life expectancy of our population, families need to find a way to generate income for longer periods of time. This portfolio is specifically constructed to include only 25 U.S.-traded stocks that pay cash dividends and is diversified with holdings across multiple economic sectors. The performance goal is to simply beat the total return of the S&P 500*** over a market cycle (coincident with an economic cycle) of 4-to-6 years. The “Plus” in the product name signifies that we also hope to realize capital appreciation with a portion of the stock holdings to accentuate total investment returns of the strategy.
*Diversification does not guarantee a profit or protect against loss in a declining market; it is a method used to help mitigate investment risk.
**Small capitalization securities involve greater issuer risk than larger capitalization securities, and the markets for such securities may be more volatile and less liquid. Specifically, small capitalization companies may be subject to more volatile market movements than securities of larger, more established companies, both because the securities typically are graded in lower volume and because the issuers typically are more subject to changes in earnings and prospects.
***Indices are unmanaged and investors cannot invest directly in an index. The Standard & Poor’s 500 (S&P 500) is a subjectively formed, unmanaged group of securities considered to be representative of the stock market in general. It is a market value weighted index with each stock’s weight in the index proportionate to its market value.