Our Philosophy
Over the course of market cycles, various underlying factors in the stock market rotate into and out of leadership. Sometimes the market may reward taking more risk. Other times, it may be beneficial to assume a defensive posture by owning lower-risk stocks.
Rather than adhere to a single-factor approach, our stock strategies seek to identify which underlying factors appear to be expanding and which are contracting, and then position the portfolio accordingly. This approach is intended to allow flexibility to be opportunistic when conditions are favorable, defensive when they are not, and neutral when markets lack transparency.
ADAPT TO MARKET CONDITIONS
We aim to align the portfolio holdings with prevailing market conditions. When our proprietary metrics reveal constructive conditions, we may increase risk exposures in market segments experiencing the most favorable underlying trends. Conversely, when market conditions deteriorate, we may position the portfolios in a more defensive posture.
SECTOR AGNOSTIC
While we monitor sector weightings relative to benchmarks, we do not seek to replicate them. When our analysis supports a sector’s fundamentals, we may allocate more heavily than the benchmark. Conversely, if fundamentals appear less compelling, we may reduce r exposure or avoid the sector altogether.
RELATIVE DEGREE OF CONCENTRATION
Our strategies typically hold a focused number of positions – generally 20 to 40 securities, compared to more diversified benchmarks, which often include hundreds or thousands of holdings. Concentration can amplify potential gains and losses.
THE ROLE OF DIVIDENDS
Dividends can contribute meaningfully to total return over time. Historically, reinvested dividends have enhanced long-term returns compared to price appreciation alone. We seek companies with a history of paying and potentially increasing dividends, supported by strong fundamentals such as free cash flow.
Why Invest with RWA Capital?
EXPERIENCE
Our investment strategies and experienced investment professionals have navigated a variety of market conditions. Our research and investment teams have more than 40 years of combined experience building and actively managing client portfolios in a variety of proprietary strategies.
INTEGRITY
We act as fiduciaries and are committed to transparency in our process and reporting. We strive to maintain accountability and value the trust our clients place in us.
DIVERSE OPTIONS
From the beginning, our boutique firm has focused on creating tailored solutions to meet client objectives. Whether clients seek income generation, long-term capital appreciation, risk management, or a comprehensive portfolio solution, we offer separate account strategies designed to address those needs.
ACCESS
If you have questions about our strategies, give us a call. We pride ourselves on being accessible and responsive.