|
|
|
| |
 |
Partner
Rockwood Capital, along with our sub advisor, Contravisory
Research and Management Corp. (CR), offers a highly
disciplined, opportunistic investment approach
to investing in domestic equities. Whether utilizing
the "All-Cap" core or "Small-Cap" style,
each approach to equity investing seeks capital appreciation
through a diversified portfolio of common stocks. Our
goal is to out-perform the broad market over time,
with particular emphasis on out-performing in down
markets.
|
 Philosophy
Through over 30 years of research and successful application,
CR has developed a disciplined, quantitative approach
based on long-term relative price-trend analysis.
This approach identifies stocks possessing good
underlying fundamentals and investor psychology
that are expected to be leading stocks and industry
groups for a protracted period. CR’s strategy
is non-correlated to most other managers, making
it attractive to those seeking style diversification.
|
|
 This
style is also opportunistic, not constrained by market
capitalization (small vs. large) and/or style (growth
vs. value). The CR strategy has proven its worth over
many market cycles, identifying changes in stock prices,
one stock at a time.
|
All-Cap
Proprietary research provides the basis for this comprehensive
and highly-disciplined approach to equity investing.
Beginning with a universe consisting of the S&P 500
stocks and an additional 1500 issues, long-term relative
price-trend analysis is performed in order to identify
those stocks that are leading or lagging in absolute
terms, as well as on a relative basis versus the S&P
500 Index. Particular emphasis is given to changes in
trend direction, either positive or negative. All stocks,
industry groups and economic sectors are then assigned
a rating within the CR relative price cycle.
Historically, stocks and
industry groups have tended to move in 18–24 month
relative price cycles. Therefore, when a trend is
identified in a stock or industry group, the duration of
that trend (either positive or negative) is expected to
be 18–24 months.
Portfolios are carefully constructed and managed one-stock-at-a-time.
Generally, portfolios will have an average of 40 positions.
Changes to the portfolio will typically occur once per
month during the first week of the month, thus resulting
in relatively low turnover and lower transaction costs.
All positions are initiated at 2.5% of the total market
value of the portfolio. Positions which appreciate to approximately
8% of the portfolio are reduced by half.
The portfolio will concentrate positions (buy) in A, B
and C rated stocks according to the CR Relative Price Cycle,
and sell those that are downgraded to D. The portfolio
invests in liquid domestic equities, is monitored daily
and will typically be fully invested in the market.
|
|
|
|
|
 |
|
|
