The Value of a Repeatable Process

Our investment process is simple and straightforward – it’s consistent, and repeatable. It’s important to us at South Texas Wealth™ that we are able to articulate our financial planning strategies in a manner that’s easy for our clients’ to understand. Because as Albert Einstein once said, “If you can’t explain it simply, you don’t know it well enough.”

South Texas Wealth™relies on a repeatable, research-driven process to develop investment strategies and then construct personalized allocations that are aligned with our individual investors needs, goals and risk tolerance. Each of our process-driven, time-tested strategies are designed and executed by a dedicated team of portfolio managers as well as fundamental and technical analysts and strategists.

4 Keys to a Disciplined Investment Process:

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Goal Identification

Our experienced team seeks to employ a repeatable, research-driven process that:

  • Focuses on selecting high-quality, well-run companies determined through disciplined investment selection and due diligence.
  • Is rigorously evaluated by analysts and Jeremy Sakulenzki prior to implementing a new investment idea.
  • Applies a sequence of tests that eliminate investments deemed to be outside of a portfolio’s risk profile or the established investment goal.
  • Develops investment strategies based upon ultimate end-goal for the individual investor.
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financial planning process

OWNERS, NOT RENTERS

We prefer to be owners of high-quality companies, rather than renters of stock. Most equity owners look for short-term instant returns – a rental approach – chasing performance over 2 to 3 quarters. In contrast, we take a long-term approach focusing on how the company is positioned in its industry over a 3 to 5 year time horizon, an “owner” approach. This puts our portfolios in a better position to ride out volatility over the short term.

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EXECUTE ON OUR BEST IDEAS

We make our best ideas count through concentration of positions where we see value and upside potential over a 3 to 5 years span. Typically our strategies here hold only 20-50 different positions as opposed to many over-diversified mutual funds which may hold as many as 500. This method provides a concentrated portfolio of companies with upside potential, regardless of the correlation of their returns. While it may lead to swings in portfolio value due to the concentrated nature, there is a much better chance at outperforming many other investment strategies by capitalizing on these opportunities.

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TRANSPARENCY

Transparency in fees, transparency of information, and ongoing communication are the primary keys to our investment process. Research reports, trade notices and strategy performance are shared openly with our clients. Fee transparency with our investment strategies allows our clients to truly know the total fees they are paying on any given portfolio. Ongoing communication with the investment advisor through regularly scheduled meetings, portfolio updates and direct communication whenever needed – this allows us at South Texas Wealth™ to provide an unprecedented level of transparency.

By leveraging our disciplined investment process, our clients receive transparency of information, seamless proactive service and the trust and accountability required to help meet all of their financial objectives.

OBJECTIVE

  • Tactical, Actively Managed Absolute Return Strategy
  • Strong Risk Management Seeking Protection of Irreplaceable Capital
  • Rigorous, Repeatable 4-Step Investment Process
  • Emphasis On Transparency and Communication

FOCUSING ON PROTECTION OF IRREPLACEABLE CAPITAL

Our Absolute Return Strategy is a strategy designed for our clients who have irreplaceable capital and are seeking capital preservation over appreciation. The objective is to participate in advancing markets and to protect capital in sideways to negative markets. The tactical nature of this strategy allows us to include a wide range of styles and strategies focusing exclusively on low-volatility and total return over market cycles – both short-term and long-term.

  • Portfolio Must Emphasize Risk Management
  • Financial Advisors Need To Use A Larger Playbook and Broaden the Range of Investment Options
  • Combines Fundamental Research Conducted By Our Team of Financial Professionals with Technical and Quantitative Data To Ensure Adequate and Extreme Risk and Asset Protection

“The world has changed, shouldn’t your investment strategy?”

INVESTMENT PROCESS

1. Identify Long-Term Investment Opportunities:

Our financial professionals identifies opportunities and creates portfolios based on asset and sector classes believed to be in a long-term upward trend. Then we integrate and synthesizes independent analysis with comprehensive market data such as technical, fundamental and quantitative data as well as insights from internal independent analysts.

2. Develop Independent Investment Ideas:

Here we seek companies, sectors, investment vehicles that are positioned to potentially benefit from identified long- term opportunities, low expense ratio and liquidity.

3. Optimize Trading Decisions:

We utilize multiple analysis tools and techniques to enhance investment decisions including bottoms-up, fundamental analysis by some of the most talented financial professionals in the industry to determine fair market value of assets and investments. This is then paired with technical analysis to ensure appropriate investment timing.

4. Enhance Investment Decision Process:

Constantly, we monitor investment behavior trends to enhance the decision-making process, such as insider activity, consumer, business and market sentiment.

*No strategy assures success or protects against loss. This information is presented as an introduction to the portfolio strategy and for educational purposes. As such, it is not intended as a solicitation or offer.