|
|
|
| |
| Additional information |
| |
| Gateway Financial Advisors, Inc. |
| |
| |
Overview:
Investment Process:
Our investment process begins with the belief that market sector and asset class forces influence the greatest portion of an individual securities price movement. Our investment approach is both a top down and a bottom up approach and starts with a risk analysis that reviews broad market segments, asset classes, and sectors. The goal during this step is to determine where risk is the greatest (areas we want to avoid) and where risk is the lowest (areas we may be willing to invest). Our next step looks at portfolio construction. Here we select market allocations, and form within it, asset class and sector allocation. Finally, we determine positions and their weightings, utilizing stock overlap comparisons, beta ratings, and investment methodologies. Two distinct methodologies in concert with each other are: technical and fundamental analysis. While many money managers use only one or the other, very few use both. Fixed income securities are chosen with the same care and attention as stocks or other investment vehicles. We strive to help increase total return within the framework of capital preservation and reducing overall risk.
Dynamic Allocation:
Asset classes rotate in and out of favor constantly. We do not believe our investment goals will be realized by focusing exclusively on a single asset class. Instead, our process can, and sometimes does, allow us to zero weight an asset class. There are times, for example, when mid-caps and/or small-caps out perform large caps on a relative basis. Hence, we would likely significantly underweight large-cap in favor of the more attractive class. If there aren't any attractive asset classes, we may hold larger than normal amounts of cash or cash equivalents. In such cases, we may utilize some investments such as bonds or even just pure money market accounts.
Sell Discipline:
Sell discipline was completely ignored in the bull market of the late 1990’s and is only now being talked about again. We are not new to the party as an active sell strategy has been part of our investment philosophy since the beginning. Simply put, sell discipline knows when to take profits or cut losses. The very first application of sell discipline is when we first add a position to the portfolio because we must discuss with the client when they feel and we feel the investment has reached the goal we want to achieve. Many times we will implement a stop loss order and/or a sell order at a particular level goal when we add the position. Our portfolios are all updated nightly and are reviewed each morning for changes.
Monitor Systems:
We take great pride in that we monitor our client portfolios on a daily basis. This is done through the assistance of technology and the ability to flag accounts and place benchmarks on both the accounts and our portfolio designs. Daily these account reports are generated and our staff reviews the shifts, changes, or concerns in each account and portfolio design. The alert systems allow us to closely watch what is going on in the account and then make educated decisions as to how to respond. We provide extensive research on holdings in the client accounts, doing stock overlap comparisons, with not only the holdings under our management but also those in other investments the client may own. This overlap comparison allows us to make sure the client has a balance in the design of their investments and not overly weighted in any sector or individual holding.
Money Manager Styles - GFA’s Approach:
We are frequently asked at GFA to explain how our investment style differs from that of other money managers. While we cannot comment on the thousands of money managers around the world, it is easy to group most money managers into three distinct styles:
Multi-Style Managers:
Multi-Style Managers are the most common type. These are the managers who use a typical “asset allocation” approach. For example, they tend to put every client into some combination of stocks, bonds and cash. Typically, these managers have a heavier position of stocks for younger clients and a heavier position of bonds and cash for older clients. Within the stock category, there is usually a collection of big and small company stocks, growth and value stock, foreign and domestic stocks, etc. Within the bond category, there may be a collection of government, corporate and municipal bonds of various maturities. The cash portion may be either taxable or tax-free. The theory under this type of approach is that if one asset class, being stocks, or cash, is not doing well, the other classes should be doing better and thus help hold up the performance. However, the opposite is also true. During the periods when one asset class is doing well, the under-performance of the other two asset classes will drastically pull down the performance of that one superior asset class.
Single-Style Managers:
Single-Style Managers are those who use one particular style, most commonly an equity style at all times. For example, there are a number of very well known and highly regarded managers in the U.S. who only use value stocks in their portfolios. Some use only growth stocks, while others use only small cap stocks, etc. These managers tend to do very well for their clients when their particular investment style is in favor. However, specific investment styles gradually go in and out of favor over time. When a single-style manager may do very well for its clients when its style is in favor, it tends to do very poorly when its style is out of favor.
Style-Rotation Managers:
Style- Rotation Managers are the rarest of all managers. This is the style that is used by GFA. This style of managers has to be very accurate in its analysis of the market to correctly move clients into the correct asset classes.
Investors should understand that active trading in a portfolio may result in a taxable event depending upon the type of account held. Active trading may also subject an investor to additional fees and charges depending upon the type of investment held. |
|
 |
|
History:
Gateway Financial Advisors, Inc. was formed in January 2000, Prior we operated under the name of Shane Westhoelter and Associates insurance agency, formed in 1988.
The focus of Gateway is to provide a "One Stop Financial Planning Shop".
Today Gateway office locations across the USA. Look under "Our Offices" to locate an office near you. |
|
|
|
|
|
|
|
 |
|
 |
|
|
