A Disciplined Approach To Investments
Reynders, McVeigh Capital Management is dedicated to a core discipline
that has provided both capital preservation and growth through varied market
cycles – periods that have encompassed social and political upheavals,
disruptive technological change and the challenges of an expanding global
economy.
Thorough, independent research underlies all of our investment recommendations.
Fundamental company analysis, communication with management, and reviews
of economic, industry, and corporate data with our independent investment
roundtable and our capable client base inform our process. We use information
from all of these sources as we work to make sound investment decisions
and to formulate investment policy.
Equity Management
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 invest where we see compelling values – across
all market capitalizations. We look for sustainable growth opportunities
at home and abroad. We gain advantage by analyzing potential catalysts
and company prospects over a three- to five-year timeframe and believe
that considered, strategic decisions serve clients better and than tactical
trading responses to short-term market fluctuations. We believe in
the power of compounding returns and recognize the toll that taxes and
transaction costs can take over time.
Long-term investment success requires a strategy that provides growth during
times of opportunity and capital preservation in times of hardship. We
seek out low-debt companies with progressive management teams. We invest
in industries that enjoy consistent or growing 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.
Each investment portfolio at Reynders, McVeigh Capital Management is tailored
to meet the specific requirements of each individual client. We do
not sell investment products. 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.
Fixed-Income Management
The purpose of the fixed-income component of a balanced portfolio is twofold:
It must generate assured income; and it must provide stability in the investment
mix. We do not believe in taking on undue risk in fixed-income investments.
We do not put principal at risk by purchasing suspect credits or inordinately
long maturities. We invest in the highest-quality credits when constructing
bond ladders for clients and will only consider U.S. Treasury instruments,
foreign government bonds, and highly rated municipal and corporate offerings.
We buy at or near par and hold to maturity, avoiding the potential for
capital loss.
Bond portfolios are carefully tailored to individual circumstances. Tax
status, liquidity requirements and income needs are all critical factors
in establishing the right fixed-income mix for each client. We carefully
monitor activity along the yield curve and will alter or add maturities
when it is to our clients’ advantage or as current bonds mature.
