Our all stock SMA strategy invests for long-term growth and is centered around two core competencies - researching high-quality companies and actively managing portfolios built with the individual stocks of those companies to provide growth and income for our clients. We invest client portfolios in approximately 30 individual stocks of U.S. based industry leaders that compete and win around the world. We focus on high-ROE businesses with track records of delivering rewarding long-term growth in sales, earnings, cash flow, dividends, and ultimately stock prices. Our “GPM Grade” companies are built to adapt and thrive while generating growth in value and income for shareholders. We add select stock ETFs to target certain sectors that we believe have substantial upside potential or to broaden diversification. Our approach gives us confidence to ride out market pullbacks and is well understood by our clients, who share our long-term view. GPM’s focus list is comprised of a continuously refined group of approximately one-hundred leading companies that we follow closely.
GPM Stock Selection Criteria
We develop our best understanding of the short and long-term growth prospects for the business. Our analysis should provide reasons to expect the share price to materially appreciate within two years of purchase. Ultimately, we want to buy stocks when the underlying business value is both growing and substantially greater than the current share price.
Our moderate-risk Balanced SMA Strategy invests for growth and current income. Balanced portfolios take a more conservative approach that combines a solid foundation of GPM stocks with a well-diversified bond component to buffer risk and add to an income stream that we expect will grow over time. Many clients view their balanced portfolios as a core component of their retirement investing portfolio. Portfolios are flexibly managed and tailored to individual client risk. The bond component holds cash, government and investment grade floating rate and short-duration corporate bonds and high yield issues.
Clients leverage our experience to develop, refine and actively execute a well-conceived and well-tailored overall investment strategy. GPM does not hold any client money. All accounts are held in client name and separately managed to meet their individual investment objectives. Our primary custodian for client accounts is the institutional division of Charles Schwab & Co.