Our Investment Philosophy


We focus on growing our clients’ assets over full market cycles. Our objective is to help them achieve their long-term goals by making sound investments that are designed to outperform the market with less overall risk.




Our Investment Strategies


We offer several equity and fixed income investment strategies, all united by their focus on investing in securities that carry less risk because they trade at a discount to their intrinsic value.  Our balanced management services combine equity and fixed income with a valuation based tactical asset allocation.



Equity


We specialize in managing portfolios of U.S. traded stocks for our Small Cap Value (Russell 2000 Value benchmark), Value Equity (Russell 1000 Value), and Diversified Value (S&P 500) strategies.  The Small Cap Value strategy focuses on companies with a market capitalization of between $100 million and $4 billion.  The Value Equity and Diversified Value strategies focus on companies with market capitalizations greater than $2 billion.

We believe that substantial investment returns are likely when quality companies are acquired at depressed valuations. We identify attractively valued, high quality companies by utilizing a fundamental, bottom-up, value-focused investment discipline.

After screening the appropriate capitalization universe for companies with attractive value characteristics,  the investment team completes a thorough review of the company’s financial statements, business strategy, and competitive position in order to develop an estimate of the company’s intrinsic value. 

If the company’s stock is trading at a substantial discount to our estimate of value then it may be added to the portfolio.  Our investment process also focuses on identifying one or more catalysts  for each security that we believe will unlock shareholder value. 

We build diversified, but relatively concentrated portfolios that are designed to outperform the assigned benchmark while controlling for risk.  Stocks are sold when: 1) there is a change to our investment thesis; 2) when the security is considered to be fully valued; or 3) a more attractive investment is identified.



Fixed Income


Our fixed income process is based on a multi-faceted, total return methodology which focuses on the four key components of fixed income portfolio construction:  duration management, yield curve positioning, sector rotation, and security selection.  We seek to add value and control risk in each component of the portfolio construction process to deliver superior risk-adjusted returns through all phases of the economic and interest rate cycles. 

Our investment process begins by gaining a full understanding of each individual client’s needs.  By determining our client’s return objectives, risk tolerances, investment constraints, and liquidity requirements, we are able to create a customized solution tailored to each client’s unique situation. 


We base our investment decisions on an objective analysis of historical relationships viewed against current market conditions.  Our duration and yield curve positioning are driven by an analysis of the current level of inflation-adjusted yields compared to their historical levels and the relative steepness of the interest rate curve. This perspective is enhanced by an analysis of the shape and level of the short-term yield curve, which is a good proxy for the direction of future Federal Reserve policy.

Sector allocation decisions are determined by the current yield advantage in the market compared to historical valuations and the perceived risk for the sector.  In security selection, we seek to find undervalued securities in the market, based on their level of risk and liquidity, with cash flow characteristics that meet the portfolio’s objectives. 



Balanced Portfolio Management


We offer Balanced Account strategies to those clients who wish to address multiple asset class allocations in one portfolio. Within guideline ranges established with each client, Buckhead Capital will actively allocate between the primary asset classes of equities, fixed income, and cash.

In making these allocation decisions, we focus on the relative attractiveness of the equity market versus the fixed income market. We review these relationships on a regular basis, and make changes to portfolios when the relative valuation of equities and bonds changes significantly.




Focused On Value