Our Perspective on Client Relationships
While some client situations may be similar, we treat each relationship in an individualized manner. For all account relationships – individuals, trustees, professionals, retirement accounts – we begin with thorough discussions of the client’s objectives, concerns, and factors related to their particular financial situation including risk assessment levels. This collaborative approach, where we work with each client to establish account goals and risk parameters, is an integral part of our initial client engagement and is periodically updated in ongoing dialogue.
Investment Strategy and Account Management
We concentrate our investment focus on stocks, bonds, mutual and exchange traded funds (ETFs). As an independent investment advisor, we have an open architecture investment platform that enables us to select investments without conflicts of interests.
Through asset mix, a portfolio can be tilted toward current income and capital preservation, or directed toward growth of capital with varying degrees of risk. When capital preservation is the primary objective, we seek stability and consistent income from high quality, intermediate term bonds. For accounts with an appreciation focus, we invest the majority of capital in common stocks of leading companies that are attractively valued, supplemented with securities the market is currently undervaluing (in our view) with expectations for a catalyst to correct this mispricing.
Strategic investment management requires an on-going analysis of the economy and financial markets that includes the following:
- Demographic, political, social trends, and other variables that influence global economies
- Monetary and fiscal policy
- Confidence levels of consumers, businesses, and world leaders
- Investor sentiment and positioning
- Absolute and relative valuation of securities
Our Approach to:
At Lincoln Capital, we view stocks as what they truly are, ownership interests in a business. While our preferred holding time is “forever”, we practice “active” portfolio management. We adjust portfolios when market movements and developments dictate that tactical changes are warranted in order to protect client assets and capitalize on periodic profit opportunities that arise.
Our goal is to generate a portfolio of quality companies that are attractively priced relative to our estimate of fair value. While building and maintaining the portfolio, we remain cognizant of macroeconomic trends and their impact on company fundamentals. While we diversify across industries, our methodology adds value by selective variations in sector allocations when warranted.
For capital preservation and current income, we invest in various types of bonds that typically are high quality, marketable, short to intermediate maturity issues. This includes Treasury, agency, municipal and corporate issues. While our intent at time of purchase is to hold bond selections until maturity, market dynamics may provide the proper ingredients for active portfolio management.
Fund selections are based on various factors and criteria, including: performance history; the track record of the fund managers; the fund’s investment objectives; management philosophy and style; and the fund’s management fee and expense structure.
For taxable accounts and entities, prudent tax planning plays an important role in optimizing portfolio returns and is an integral part of our asset management services. Portfolios are structured and managed with an on-going consciousness of tax factors, and in coordination with clients and their tax advisors.