Investment Portfolios

Tandem Core Equity Portfolio

The Tandem Core Equity Portfolio utilizes a risk-controlled strategy that seeks long-term capital appreciation through a broadly diversified portfolio of 30-50 stock positions. The goal of the portfolio is to secure healthy returns without unnecessary levels of risk.

Our fundamental analysis combines top-down macroeconomic strategy with bottom-up security selection. We utilize a time-tested rigorous screening process for security selection. The resulting portfolio holds well-established companies with stable earnings, strong management teams, and healthy balance sheets. We buy stocks across all economic sectors for both proper diversification and to avoid excessive correlation. By strategically diversifying individual holdings across economic sectors, client portfolios are exposed to far less company-specific risk than at most other investment firms or mutual funds.

The Core Equity Portfolio holds a blend of Growth, Value, and Growth at a Reasonable Price (GARP) stocks with the proportions based on where the management team believes we are in the business and economic cycle. The portfolio is designed to outperform the S&P 500 over full market cycles while consistently taking less risk.

Tandem Exchange-Traded Fund Portfolio

The Tandem Exchange-Traded Fund (ETF) portfolio is designed for investors that prefer to own exchange traded funds instead of individual equity securities. It has a strong S&P 500 orientation, while adding lesser correlated assets as well. The ETF portfolio has a limited number of positions and very low turnover. In addition, portfolios contain appropriate percentages in international ETFs for added diversification. ETF portfolios tend to mimic the same sector and style over- and underweights as the core equity portfolio.

Tandem Balanced Portfolio

The Tandem Balanced Portfolio blends our equity portfolio(s) with fixed income holdings into a single portfolio for an investor seeking a traditional, risk-controlled investment approach. The investment objective is total return consisting of both capital appreciation and current income. Equity and fixed income weightings vary based on a client’s individual risk profile and/or specific goals of the client. Portfolios are monitored regularly to determine when rebalancing between asset classes is required.

The investment objective of the Balanced Portfolio is to outperform a comparable (stock/bond allocation) benchmark over rolling five-year periods, with lower volatility and less overall risk.

Tandem Equity Income Strategy Portfolio

The Tandem Equity Income Strategy Portfolio is designed for high net worth individuals and institutional investors wishing to compliment an already diversified portfolio. The strategy works best in a relatively flat or slightly rising equity market. The portfolio seeks a combination of high current income along with capital appreciation. The income is generated through the selling of call and put options on securities held in the portfolio. Although this strategy provides a more generous income payout alternative in a low-yield environment, it is not meant to serve as a fixed income substitute.

The Equity Income Strategy Portfolio has 30% to 40% invested in 15-20 high-quality stocks or ETFs from diverse economic sectors with both put and call options written against each position. The balance of the portfolio will be invested in ETFs that track market indices, primarily the S&P 500 Index, with both put and call options written against the positions. The investor receives income from writing the options, dividend income from the underlying index/stock, and modest appreciation potential of the underlying shares.