:: Investment Management Services
- Equity
Management
- Balanced
- Fixed Income
- Tax Efficient Investing
- Additional Capabilities
- Fees
- TCM Brochure
Equity
Portfolio Management
Equity management is the implementation of
our stock selection process against a client's
return objectives and risk profile. In order
to mitigate individual stock risk, we create
a diversified portfolio of holdings across
industries.
While we concentrate on large
companies, we selectively populate our portfolios
with medium and smaller companies where client
circumstances and objectives warrant. Our
goal is to generate higher returns by selecting
companies with the potential to rapidly grow
their business for the foreseeable future.
By owning companies we believe could be tomorrow's
leaders, we strive to generate high returns,
despite possibly higher volatility in the
near-term for our more aggressive clients.
Given our valuation discipline,
we are likely to be contrarians as we build
investment positions. Our goal is to use market
and individual stock volatility to our advantage.
A company's fundamentals and valuations determine
the attractiveness of a stock over the long-term.
Balanced
Portfolio Management
While equity investments outperform fixed
income strategies over long periods of times,
a balanced portfolio offers clients a higher
current yield and less volatility. A balanced
portfolio contains both stocks and fixed-income
securities chosen in a mix appropriate for
the client's need for capital preservation,
cash flow (taxable or non-taxable) and growth.
For income-oriented clients, a balanced portfolio
enhances overall portfolio yield.
When establishing a balanced
portfolio we will generally establish a median
equity allocation between 40-60% for a client
whose primary goal is income and capital preservation
and 60-80% for a client whose primary goal
is growth and appreciation.
Fixed
Income Portfolio Management
Fixed Income Portfolio Management can be provided
as a stand-alone service or as part of a balanced
portfolio. We emphasize preservation of capital
and principal stability in our fixed income
management strategy. To further enhance the
stability and strength of the portfolio, we
concentrate on higher quality bonds that carry
investment grade ratings. We avoid lower rated
bonds, especially in the high-yield or so-called
"junk" area.
Our numerous contacts in the
fixed income community allow us the opportunity
to search out and find bonds that fit our
clients' specific portfolio needs. We also
utilize these contacts in order to find good
prices in a very inefficient market.
Tax
Efficient Investing
Tradition Capital Management manages client
assets with an awareness of taxes. We explicitly
recognize that managing taxes is an important
component to taxable accounts such as personal
assets, trusts and partnerships. Since we
focus on investing versus trading, our capital
gains are almost always long-term, which are
entitled to favorable federal tax treatment.
We also like to talk with clients
about gifting highly appreciated securities
in order to fund charitable donations and
thus avoid paying taxes on the appreciated
securities. Charitable giving of appreciated
securities helps avoid some taxes; however,
gains are often larger than targeted levels
of charitable giving.
While our focus is on after-tax
returns, incorporating sound tax management
into the investment process helps minimize,
not eliminate taxes. If strong investment
results are achieved, taxes will need to be
paid.
Additional
Capabilities
Tradition Capital Management provides tax
and estate strategic analysis to clients depending
upon the scope of our investment relationships,
upon specific specialized engagement, or at
the request of our clients. Our in-house counselor
can help clients decide among various estate
planning options. Occasionally, clients require
an immediate 'big picture' analysis and we
service that need.
We also review various areas
of planning, including some of the more specialized
estate planning techniques such as private
foundations, family limited partnerships,
charitable remainder unit trusts (CRUTs),
grantor retained annuity trusts (GRATs) or
other options. We provide a documentary review
of a client's will, trust, or other matters
pertaining to ongoing estate management. In
conjunction with this review, we objectively
help a client determine the appropriate level
of life insurance.
Tradition Capital Management
works with clients on concentrated positions
arising from low cost basis stock or stock
options. Risk, taxes and potential returns
must all be evaluated in order to make an
informed decision. Our expertise in business
analysis can also be utilized to assist in
evaluating a privately or closely held enterprise.
Planning services include a
long-term scenario analysis that helps a client
set up investment policies that meet their
long-term needs. Tradition Capital Management
also works with the leading financial institutions
in order to explore fiduciary services for
our clients. The most important characteristics
of any planning efforts that we provide for
clients are objectivity and thoroughness.
Investment Management Annual Base Fee Schedule
Our fees are based on assets under management.
The rates below are annualized rates, billed
quarterly at the beginning of the quarter
that services are rendered, with a minimum
annual fee of $10,000.
1.00% on the first $2,000,000 of assets managed
0.80% on the next $3,000,000 of assets managed
0.50% on the next $15,000,000 of assets managed
0.30% on assets over $20,000,000
Planning and Financial Analysis Fees
Review services are generally charged on a
per assignment basis as negotiated with each
client, subject to a minimum fee of $3,000.
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