Customized Managed Portfolio
No two investors are alike; some investors prefer to maximize expected returns by investing in equity assets while others prefer to minimize risk with a strategy weighted in fixed income assets.
Establishing an appropriate asset mix is a dynamic process, and it plays a key role in determining your portfolio’s overall risk and return. As such, your portfolio mix should reflect your goals at any point in time.
There are over 20 proprietary model portfolios available to the clients of Burgos & Brein Wealth Management. The portfolio solutions incorporate several investment management philosophies:
• Asset Allocation
Investing in dividend paying stocks is a proven strategy that provides investors the growth opportunities of the stock market along with steady income. Dividend paying stocks offer attractive income, an inflation hedge, volatility defense and a dual source of total return.
The Gradient 50 (G50) investment process selects 50 blue-chip, dividend paying stocks for inclusion in the portfolio. Our rigorous screens mine the universe of stocks for financially strong companies that generate ample cash flow and are exceeding analyst expectations. We then screen for companies that pay generous dividends with a history of raising those dividend payments.
Our investment team selects the final 50 stocks and diversifies the portfolio across multiple industry sectors. The portfolio is actively managed to maintain both fundamental and dividend objectives. The G50’s combination of stock selection, portfolio construction and active management delivers a high quality stock portfolio that focuses on long term growth and generous dividend income.
The Gradient 33 stock portfolio holds approximately 33 individual securities. These are companies that are growing at rates much faster than the market averages. Our rigorous selection process focuses on long-term growth metrics, specifically sales and earnings per share growth. The G33 screening algorithms rank companies who have shown historical growth trends, but more importantly are projected to consistently experience above-average increases in sales and earnings in the future. We balance these 33 stock selections between the small, mid and large capitalization sectors of the market. Doing so gives the portfolio exposure to proven growth companies while participating in the emerging winners of tomorrow.
Secular growth companies have innovative business models. They provide unique, high demand products and services to the markets that propel this growth and can change the way business is done. Investors wishing to participate in this growth seek outsized gains while understanding the inherent risks that accompany this style of investing. The 33 securities are continuously screened and monitored by our team of CFAs.
GRADIENT ABSOLUTE YIELD
The Gradient Absolute Yield Portfolio invests globally for high current income. This is a diverse portfolio with the flexibility to seek out the asset classes providing the most attractive yields in the global marketplace. Gradient Investments employs a broad based approach to identify high yielding securities across multiple asset classes. As a multi-asset portfolio it can freely move between high yield bonds, equities, emerging market debt, master limited partnerships, preferred stocks, senior bank loans and other investments to access global income.
The Gradient Investment team seeks the most attractive asset valuations to insure high income, and broad diversification to lower portfolio volatility.
The Gradient Absolute Yield Portfolio solves a major dilemma many investors face today – how to generate meaningful income in a low interest rate environment? Traditional sources of income such as certificates of deposit, savings accounts or bonds no longer keep pace with inflation. This globally diverse portfolio goes beyond traditional fixed income classes and is keenly focused on generating high current income.
GRADIENT COVERED CALL
The Covered Call Portfolio uses ETFs as the underlying investment vehicle. The allocation is unique in that the ETFs used are approximately 60 percent growth, 20 percent bond and 20 percent inverse to the stock market. We then actively manage a monthly covered call strategy on the underlying ETFs to generate additional cash flow and reduce investment risk.
The Covered Call Portfolio compliments an existing fixed income strategy while focusing on conservative risk adjusted returns. The inverse position provides a natural hedge against the market’s movements and, therefore, reduces overall risk and provides downside protection.
The Covered Call Portfolio is an ideal solution for the client looking for an income-producing portfolio with upside potential and downside protection.
GRADIENT CONTROLLED VOLATILITY PORTFOLIO
The Controlled Volatility Portfolio (CVP) is actively managed by the Gradient Investment team to achieve long-term market returns while controlling portfolio volatility. Financial markets have increasingly become more volatile and the CVP can be a solution for investors who are not able to endure the gut-wrenching peaks and valleys of market swings but need to realize long-term investment goals.
The CVP employs intelligent offense combined with dynamic defense to actively pursue profitable investment opportunities while curbing volatility over multiple economic cycles. The CVP is a powerful tool using multiple volatility management strategies such as dynamic asset allocation, managed futures and tactical equity/fixed income allocation.
Market volatility is inevitable. The disciplined investment process of the CVP helps clients navigate their way through fickle markets while keeping their investment strategy intact.
GRADIENT PRECIOUS METALS
Historically, precious metals such as platinum, silver, and gold have been a source of stability and an extremely effective tool in uncertain economic times. Owning a diversified portfolio of precious metals as a part of an overall investment strategy can act as a hedge against market turmoil. There are numerous ways to purchase and own precious metals, and owning a portfolio of exchange traded funds (ETF) and no load mutual funds provides several distinct advantages over the physical possession of these metals. Such advantages include diversification, liquidity and pricing, and custody.
Additionally, owning a portfolio ETFs and no load mutual funds allows for investing in precious metals in retirement accounts.
GRADIENT TACTICAL ROTATION
The Gradient Tactical Rotation (GTR) portfolio is a rules-based investment strategy designed to generate excess returns over global stock market indices. Equity markets around the globe often display wide dispersions of return over time. This creates the opportunity to make tactical investment decisions and rotate client funds to areas of strength around the globe.
The tactical investment process identifies broad geographic investment markets (and their sub-sectors) where price momentum is greatest. In significant and sustained down markets throughout the world the GTR can deploy a catastrophic cash call and move 100% to cash. The investment team utilizes a quantitative, two-factor approach in its tactical investment process and deploys a proven methodology that selects the most optimal global asset class sectors. The GTR is actively managed to maximize risk-adjusted return over full market cycles.
GRADIENT LADDERED INCOME
One of the most effective investment strategies available to fund future cash flow needs is to build a bond ladder. The Gradient Laddered Income strategy is constructed by purchasing diverse fixed income instruments that mature at regular intervals from three to seven years out. After the nearest security matures the proceeds are reinvested into a new year or they are spent to cover planned expenditures. The fundamental investment theme behind a bond ladder is diversification by maturity. It also curbs reinvestment risk as the portfolio produces a steady stream of cash flow.
Maturity specific ETFs and other liquid investment vehicles are now available to the individual investor allowing for liquidity, low-cost and diversification all within a particular maturity year. The Gradient Laddered Income strategy is a unique, custom portfolio combining the best of bond mutual funds and individual bonds to create yield and immediate cash flow.
GRADIENT FIXED INCOME SERIES
Fixed income assets are often misunderstood, but at Gradient, we understand the complexities of investing in bonds. Our fixed income portfolios are carefully designed for long-term investors seeking current income through a diversified approach.
The main goal of the fixed income program is to provide investors with current income and relative price stability by building diversified portfolios across all fixed income sectors. Our investment strategy uses a bottom-up fundamental research approach to identify solid fixed income investment opportunities producing a reliable income stream with relative price stability.
GRADIENT ENDOWMENT SERIES
The most successful investors are not who you think they are! If you ask people who the most successful investors are, you get responses like Warren Buffett of Berkshire Hathaway; John Neff, formerly of Vanguard’s Windsor Fund; or George Soros, the famous hedge fund operator. However, some of the most successful investors from a risk/reward perspective are the large university endowment funds. This group includes universities with endowments larger than $1 billion such as Yale University and Harvard University.
Large endowment funds have consistently beat the market on a risk-adjusted basis. These funds diversify away from traditional asset classes, like stocks and bonds, by investing in lesser known asset classes, such as currency, private equity, commodities, and absolute return strategies. These lesser known asset classes have the capability to deliver profits over a business cycle. The same opportunities are now available to individual investors via low-cost, publicly-traded ETFs within our Endowment Series.
Burgos & Brein is the leading financial advisor and retirement planning firm in Apopka, Clermont, Kissimmee, Lake Mary, Maitland, Ocoee, Orlando, Oviedo, Windermere and Winter Park specializing in customized managed portfolios.