Equity Portfolio Construction Parameters
Each account is managed in accordance with specific client
needs and objectives.
An efficient portfolio is built with adequate
diversification, the reduction of risk while working to increase
reward.
Generally, no one firm will exceed 3% -5% positions
at cost.
Most portfolios will include 30 to 40 issues.
When a holding reaches 8% through appreciation,
serious consideration is given to paring down the position.
Exposure to any one industry as defined by Standard
& Poor's, is usually limited to 10 of the equity assets.
Liquidity - depending on the market cycle relative
valuations, and account risk parameters we may find value in small as
well as larger companies.
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