Investment process
Kevin Williams and William Cabell are Senior Portfolio Managers - Portfolio Focus Program, and are supported by RBC Capital Markets research analysts, RBCWM Portfolio Advisory team, and third-party research as provided by the firm.
We prefer owning individual securities rather than funds because expenses can lower, transparency better, tax - loss strategies easier to execute, and portfolio composition more controllable. To help mitigate risk, investments are diversified both by industry sector and companies with initial equity positions in the range of 2% to 5% of the total portfolio.
Our team follows two basic strategies: the first, a growth and income strategy, which invests primarily in dividend paying stocks, bonds and other fixed income. The second strategy pursues growth by allocating more investments to equities that have higher growth rates or higher potential returns.
Value investing is at our core, following fundamental analysis which leads us to owning companies whose valuations are reasonable or valued less than either the general market or its industry or the company’s own growth rate. Many times, these companies are bought when they are out of favor or in times of general market dislocation. We also favor companies that demonstrate growing dividends that can either support clients who have income needs or be reinvested back into the portfolio. Most of the companies we own are high quality and well known.
We may sell a company if it becomes too expensive on either an absolute or relative basis, a negative event emerges, or our thesis for purchasing was wrong. We also may sell a security to swap into a potentially higher return opportunity or we may sell to realize a loss for tax loss purposes.
For clients that qualify for a Portfolio Focus advisory account, we do not charge commissions but rather our fee – based compensation is based off household assets under management. This covers our value added experience and expenses related to providing the highest level of client service, wealth planning, customized portfolio management, monitoring, trading, custody, and research.
