Managing Your Investments
It always begins with listening to understand your goals
RSS clients are diverse. Some have investment goals oriented towards growth. Others lean to capital preservation and income. To address each, we manage three types of portfolios. All are separately managed and constructed to meet the unique needs, goals and risk tolerances of each specific client.
Equity-only Portfolios
are the most aggressive. Returns tend to be highest over the long run, with lengthy investment horizons.
Balanced Portfolios
include bonds/fixed income in a client-specific allocation to provide additional current income and/or to dampen the portfolio’s stock market volatility.
Fixed Income/Bond-only Portfolios
are for our most conservative clients who prioritize income stability and avoidance of equity risk.
RSS Investment Philosophy
We don’t try to time the markets
Decades of investment management experience remind us it is unwise and rarely successful on a regular basis to attempt to time the markets. Instead, we prefer to hold companies expected to experience strong growth for long periods. This strategy also tends to be more tax efficient, retaining gains in the portfolio. When capital gains are eventually realized, their long-term nature is taxed at more attractive rates. Additionally, we conduct annual tax-loss harvesting where appropriate to reduce realized gains.
Investing for Growth
Our equity portfolios are focused on Growth stock investing, encompassing both well established and emerging companies across numerous sectors and industries. Individual stocks are selected based upon attractive relative valuations combined with the potential for long-term capital appreciation.
Growth stocks
represent companies with leading-edge products, services and business approaches that are expected to expand revenues, earnings and cash flows at higher rates
Our Stock Research Process
We continuously monitor hundreds of stocks based on information gathered from industry and RSS research.
This may include meetings with management, press releases and investor presentations, third-party research, industry analysts, regulatory filings, specialized media and publications, and more.
Companies must also have strong balance sheets and high-quality management teams.
For a new company to be added to our existing portfolios, its stock must also provide incremental benefits, such as added diversification to the current holdings.
Clients’ custom-constructed portfolios typically contain 25-30 diversified stocks. We own companies believed to have large addressable markets with a multi-year runway for strong growth in revenues, earnings and cash flows. Many of our portfolio companies have very large market values, with some mid- and small-sized ones also included as budding up-and-comers. Income, where desired, is generated by the fixed income/bond portion of the portfolio.
Our Fixed Income Research Process
The fixed income component of portfolios often includes individual securities, exchange traded funds and/or mutual funds.
Individual securities can include corporate bonds, Treasury bills and bonds, preferred stock and municipal bonds.
Portfolio construction is based on the current shape of the yield curve, economic conditions and outlook, relative investment attractiveness, liquidity, cost efficiency and tax considerations, and may include bonds with laddered maturities.
Adjustments to the portfolios are made as conditions change to take advantage of opportunities that may arise.
All investments are high quality and investment grade.