Equity Management

Like Reynders, McVeigh, our equity management process is based on our belief that stocks of well-established companies that are producing powerful earnings and an above-average opportunity for dividend growth, when purchased at a reasonable price, will provide superior returns over long periods.

We are contrarian in our discipline, investing in companies when they are out of favor in the market.  We are long-term investors, not traders, and recognize the bite that taxes and transaction costs can take out of a client's return. We believe in the power of compounding returns.

Long-term investment success requires a strategy that provides growth during times of opportunity and capital preservation in times of hardship. We invest in low-debt companies with progressive management teams that are serving areas of sure demand. Transparency in the reporting of revenues and earnings is a critical factor in our discipline; we will only invest in companies where we can reasonably assess the risks we are taking on a client's behalf. If we cannot see how and where a company is earning its money clearly on an income statement, we will not invest.

Core stocks in our discipline can be large-cap, mid-cap or small-cap, foreign or domestic. Generally, the number of holdings in a portfolio will range from 30 to 40, affording ample diversification. We tend to avoid heavily regulated industries, and we are rarely correlated to S&P 500 market weightings.

Outside of our core dividend-growth investments in the portfolio, we seek out thematic investments where the growth opportunities are particularly compelling and/or the valuations that the general market is assigning are too pessimistic.  Thematic investments with which we remain confident include alternative energy, natural foods, world trade and preventive medical technology.  In addition, we seek out opportunities for unusually powerful upside growth in the public markets by encouraging modest investments in a package of four or five companies in emerging or high-growth industries.

© 2010 Fresh Pond Capital (a subsidiary of Reynders, McVeigh Capital Management) | 121 High Street, 5th Floor | Boston, MA 02110 | phone 617-226-3339 | fax 617. 226. 9998