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Blended Core Equity Strategy

Strategy-Seeking Value Through Tactical Management

Getting Ahead of Market Trends

Our Blended Core Equity (BCE) Strategy is a tactically managed individual stock portfolio consisting of carefully selected companies that have exhibited growth while trading at attractive valuations. Rather than simply buying stocks and holding them in the hope that values will keep rising, we prefer to rescreen the portfolio quarterly seeking to ensure only the most profitable stocks are in the portfolio. By spotting and participating in trends early, and being prepared to sell when we see conditions change, we are able to proactively target growth and seek to manage risk.


  • Targets lower volatility equities trading at attractive valuations
  • Portfolio is screened semi-annually to frequently identify stocks with potential
  • Portfolio coverage tactics through our well defined sell discipline

A Strong Sell Discipline

What sets this strategy apart is our active stance, which includes a willingness to replace holdings if we thing it is warranted, no matter how long ago or how recently we acquired the stock. If we spot a long-term trend we think will result in gains, we buy. If we think that trend has run its course, or another holding is better placed to capitalize on it, then we are happy to sell. When seeking strong capital appreciation, this kind of tactical management is key. When markets are crashing our sell discipline may take the entire portfolio to 100% cash. This willingness to go to cash truly differentiates our model. No strategy or discipline can assure a profit or protect against a loss. Investing in securities involves risk of principal.

The BCE Strategy May Be Suitable For Investors Who:

  • Have at least $100,000 and up to $5 million to invest
  • Are looking for an actively managed portfolio of individual stocks
  • Seek stocks that have historically been less volatile than the S&P 500 and are trading at attractive valuations
  • Are tired of a "Buy and Hold" approach when the markets CRASH

How the BCE Strategy Works

A Rigorous Selection Process

The BCE Strategy is made up of a focused portfolio of individual stock that are selected from a universe of over 8,000 publicly traded companies. These holdings are selected through a rigorous process designed to pinpoint companies that exhibit lower volatility than the market while trading at attractive valuations.

We begin with this universe of publicly traded companies and narrow our selections down by applying a set of rigorous criteria. We take into consideration the following when identifying and ranking these stocks:

  • Beta less than 0.70
  • Price to book value
  • Enterprise value
  • Volume requirements
  • Current earnings yield
  • Free cash flow from operations
  • One and three year average return on equity
  • We use an analysis tool that considers over 600 variables to determine which stocks are bought and sold, taking emotional responses out of our decision-making process and focusing only on verifiable facts.
  • Stocks that pass this stage are then considered candidates to be purchased within our model. The number of stocks in this narrowed universe depends on the size of the individual investment portfolio.

A Selective Focus

Our Strategy has a particularly concentrated portfolio. This gives us a potential advantage because we have a limited amount of companies to research and monitor, allowing us to direct more resources towards finding, rescreening, and keeping our ideas fresh. We believe that our selective focus means we can make better buy and sell decisions. As a result, each stock will have more impact because a greater proportion of the portfolio will be invested in it. However, if there is a loss, it could be magnified with this approach.

An Active Trading Approach

Our philosophy - to buy in an uptrend, then sell when our exhaustive research shows that the trend is waning - makes this fund far more dynamic than most. This approach helps us seek to perform in a variety of market conditions.

Ongoing Monitoring

We constantly monitor market trends, looking for new opportunities. In addition, semi-annually the stocks we hold are subjected to the same rigorous analysis they faced when they were first selected. However, a stock can be replaced at any time if it is not living up to expectations. If we see weakness, we sell. By concentrating only on those stocks that can potentially outperform, we keep our strategy dynamic. No strategy or monitoring can assure a profit.

Achieving Your Financial Goals

We are committed to providing you with advice for life, helping you create a plan for your future. To discuss how the BCE Strategy could become an integral part of your investment portfolio, please call us 502-961-6550.


Stock investing involves risk including potential loss of principal. No strategy ensures success or protects against a loss. Past performance is no guarantee of future results.