Asset Class Investment Philosophy

equity investment principals 1

Equity Investment Principles

Covenant adheres to a thematic growth investment style seeking growth at a reasonable price (GARP). We embrace the concept of investing with "the wind at our back" believing it is easier to be a successful investor by first identifying trends and then selecting leading companies likely to be beneficiaries of those emerging trends. The cornerstone of our research effort is thorough fundamental analysis coupled with the use of technical analysis for timing decisions. Tax efficiency is an important aspect of our investment style leading to the pursuit of stocks our clients can own for an extended period of time. Our turnover rate is typically less than thirty percent per year.

risk management

Risk Management

The ability to absorb risk varies widely among investors, depending on their age, experience and financial circumstances. Prevailing market and economic conditions are also important factors. Your level of risk tolerance is carefully evaluated before we establish your wealth management plan. After taking the time to gain this perspective, we are well qualified to make knowledgeable asset allocation decisions on your behalf.

Our asset management experience has taught us that the best way to reduce risk is to diversify your assets. In fact, by lowering your exposure to loss from any one market sector, diversification can boost total return in certain economic environments. At Covenant, we specialize in allocating assets among cash, fixed income, equity, REIT and commodities markets.

Establishing an optimal asset allocation requires thorough examination of your income requirements, liquidity needs, lifestyle goals and risk tolerance. Your objectives are continually evaluated to determine the need for asset allocation modifications.