A proven and fundamental approach to sustained long-term success.
At Washington Park Advisors, we emphasize a diversified, bottom-up equity selection strategy, focusing on traditional value measures to achieve consistent portfolio growth.
Our approach
For over three decades, portfolio stock selection has been based on our fundamental approach. We believe a diversified portfolio of investments based on the discipline we have developed is a path for success over the long-term.
Fundamental Approach
Our investment strategy relies primarily on a thorough, bottoms-up, fundamental approach to equity selection. We focus on deeply understanding the intrinsic value of each company in our portfolios.
Diversification
We believe that a well-diversified portfolio is critical to managing risk while aiming for consistent returns. Our investment discipline allows us to carefully balance different asset classes.
Value-Based Strategy
While no single strategy works across all investment cycles, our experience has shown that traditional value-based measures often provide the level of consistency we seek in our portfolios.
Our Core Investment Strategies
We combine growth potential and stability to create a resilient, well-rounded portfolio that performs in diverse market conditions.
We maintain a strategic allocation to manage portfolio risk.
To manage risk, we allocate between 15% and 35% of the portfolio to fixed income or other safe-yielding assets, providing a stable income stream and added security.
These investments, such as bonds, offer predictable income and act as a stabilizer during market volatility.
By including them in a portfolio, we help protect against downturns while enhancing overall risk-adjusted returns.
We focus on investing in U.S. stocks with a range of market capitalizations. These stocks typically have:
✓ Lower price-to-earnings ratios
✓ Lower price-to-cash-flow ratios
✓ Higher dividend yields compared to the average company within the S&P 500 index.
We take a measured approach to fixed income duration.
Our fixed income investments typically have a shorter duration than Bloomberg’s Government/Corporate Bond index. This approach helps us manage interest rate risk while maintaining the overall balance of the portfolio.
This strategy helps reduce the potential for losses in a rising rate environment, providing more stability and liquidity.
Additionally, shorter-duration bonds typically offer quicker access to capital, allowing for more flexibility in responding to market changes.
We maintain a strategic allocation to manage portfolio risk.
To manage risk, we allocate between 15% and 35% of the portfolio to fixed income or other safe-yielding assets, providing a stable income stream and added security.
These investments, such as bonds, offer predictable income and act as a stabilizer during market volatility.
By including them in a portfolio, we help protect against downturns while enhancing overall risk-adjusted returns.
We focus on investing in U.S. stocks with a range of market capitalizations. These stocks typically have:
✓ Lower price-to-earnings ratios
✓ Lower price-to-cash-flow ratios
✓ Higher dividend yields compared to the average company within the S&P 500 index.
We take a measured approach to fixed income duration.
Our fixed income investments typically have a shorter duration than Bloomberg’s Government/Corporate Bond index. This approach helps us manage interest rate risk while maintaining the overall balance of the portfolio.
This strategy helps reduce the potential for losses in a rising rate environment, providing more stability and liquidity.
Additionally, shorter-duration bonds typically offer quicker access to capital, allowing for more flexibility in responding to market changes.
Our Research Methodology
Through rigorous research, we manage risk while seeking value and growth. We tailor each portfolio to match our clients’ circumstances. Our active management approach ensures portfolios adapt to changing market conditions.
Key Criteria for Companies
Quality of business (balance sheet strength, competitive advantage, management team)
Dividends (higher than the market average payout, with increasing dividend trends)
Valuation metrics
Liquidity
Market sentiment
Our Sources
✓ Financial publications
✓ Meetings with corporate management
✓ Internal research
✓ Discussions with sell-side research analysts
✓ Market sentiment
✓ Analyst publications
✓ Company filings
✓ Real-time market data sources
Discover the advantage of active investment management.
Our expert guidance is designed to offer clarity and confidence in your investment decisions, helping you achieve long-term growth in today’s evolving market.
