PPG Focused Equity Strategy
Targeting Growth through Tactical Management
Quick Facts
- Targets superior capital growth through active individual stock selection
- Portfolio is screened quarterly to frequently identify stocks with real potential
- Seeks portfolio protection through our well defined sell discipline
Getting Ahead Of Market Trends
Our PPG (Participate, Protect, Grow) Focused Equity Strategy is a tactically managed individual stock portfolio consisting of carefully selected companies that we believe have demonstrated above-average growth prospects. But rather than simply buying stocks and holding them in the hope that values will keep rising, we prefer to screen the portfolio quarterly in an attempt to keep it aligned with the current market environment. 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 manage risk.
A Strong Sell Discipline
What sets this strategy apart is our active stance, which includes a willingness to replace holdings if we think it's 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. We believe this willingness to go to cash truly differentiates our model.
The PPG Focused Equity 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 strong growth from fast growing companies with a defined sell discipline
- Are tired of a "Buy and Hold" approach that may lack protection in down markets
How the PPG Focused Equity Strategy Works
A Rigorous Selection Process
The PPG Focused Equity Strategy is comprised of a focused portfolio of individual stocks that are selected from a universe of over 8,000 publicly traded companies. These holdings are selected through a rigorous process seeking to pinpoint companies with better than average growth prospects.
We begin with the universe of publicly traded companies and narrow this down by applying a set of rigorous criteria. We will identify and rank stocks on the following criteria:
- Five-year, three-year, and one-year sales growth
- Earnings surprises and increasing earnings growth Return on Assets
- A history of strong capital appreciation in rising markets
- Volume requirements
- Effectiveness rating within our Sell Discipline
- The investments identified are additionally subject to our own in-house research
- We use an analysis tool that considers over 600 variables, taking emotional responses out of our decision-making and focusing only on verifiable facts
- Stocks that pass this stage are ranked then bought within our model; the number depend on the size of the investment portfolio
A Selective Focus
This strategy has a particularly concentrated portfolio. We believe this gives us an advantage because we have a limited amount of companies to research and monitor, allowing us to direct more resources towards finding and rescreening, keeping our ideas fresh. Our selective focus means we can make better buy and sell decisions and can fully exploit our best ideas – a well-performing stock will have more impact because a greater proportion of the portfolio will be invested in it.
An Active Trading Approach
Our philosophy – to buy in an up trend then sell when our exhaustive research shows that the trend is waning – makes this strategy far more dynamic than most with 5-6 trades per month. This approach helps us perform in a variety of market conditions. For example, a buy and hold strategy will tend to lose money in a downturn, falling with the markets. But as an active manager our firm may be able to limit losses by selling those holdings most likely to disappoint, and holding cash until the market trends reverse.
Ongoing Monitoring
We constantly monitor market trends, looking for new opportunities. In addition, every quarter 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 isn't living up to expectations. If we see weakness, we sell. By concentrating only on those stocks than can potentially outperform, we keep this strategy dynamic.
Achieving Your Financial Goals
We are committed to providing you with advice for life with the ultimate goal of attempting to maintain the standard of living you have worked hard for.
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.