Investors looking to diversify their portfolio across a broad spectrum of the stock market should consider money manager Geneva Advisors' All-Cap Growth Strategy. By investing in a wide range of equities meant to offer attractive capital appreciation opportunities, the strategy can provide investors broad diversification in their portfolios.
The Geneva All-Cap Growth Strategy uses the Russell 3000 Growth Index as its benchmark, which is an index that is used to provide a gauge of the performance of growth stocks in the U.S.
When choosing a money manager, it’s important to consider long-term performance against their benchmark. To obtain detailed information about how the Geneva All-Cap Growth Strategy has performed against the Russell 3000 Index, and to learn how the Geneva strategy has performed against other money managers with similar strategies, give us a call at 1-800-541-7774. You can also get started by filling out this form.
The Geneva All-Cap Growth Strategy Investment Process
The Geneva Advisors team focuses on identifying what the firm believes are the best investment opportunities from a large universe of high-quality companies. This approach means that a stock may be chosen from a pool of smaller emerging growth companies, or it may come from a universe of more seasoned, stable growth companies.
The money manager’s ideas are generated through industry contacts, investment conferences, comparable companies, public offerings, investment team reading, and Wall Street research. The Geneva Advisors in-house research team takes these ideas and then looks to gain valuable insights by interacting with customers, suppliers, senior management, employees, industry experts, and competitors.
At the end of the day, if the company exhibits sustained levels of high profitable growth, and is projected to produce both strong near-term and long-term earnings increases, it could be chosen for investment in the portfolio.2
Geneva All-Cap Growth Portfolio Characteristics
As of December 31, 2013, the Geneva All-Cap Growth Strategy held 43 stocks with an average weighted market capitalization of $34.3 billion. This means the strategy has a bias to smaller companies than those represented in its benchmark, the Russell 3000 Index. The index has an average weighted market capitalization of $93.1 billion.
The dividend yield of the Geneva All-Cap Growth strategy is also smaller - it pays 0.18% while the Russell 3000 index has a yield of 1.40%.
From a sector standpoint, the Geneva All-Cap Growth strategy has the heaviest weighting in the Information Technology and Consumer Discretionary sectors. Those two sectors combined account for 53.45% of the total portfolio’s investments. By contrast the Geneva strategy is lightly allocated to the Materials, Energy, Utilities, Telecommunications Services, and Consumer Staples sectors – all of these sectors combined account for less than 10% of the entire portfolio.1
Should You Invest in the Geneva All-Cap Growth Strategy?
The Geneva All-Cap Growth Strategy has a distinct style of investing covering a broad range of companies in the stock market, regardless of size. It’s an all-encompassing strategy that could make sense in your portfolio if you’re seeking additional broad-based diversification.
Before investing, however, it’s important to learn more detailed information about the money manager’s strategy as well as having your portfolio and financial goals analyzed to see if it’s a good fit.
One of our Wealth Managers can provide you with more information about the strategy as well as create an investment plan for you to demonstrate whether the strategy might make sense as part of your overall investment portfolio. Give us a call today at 1-800-541-7774. Alternatively, you can get started by answering a few questions here.
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Strategy descriptions listed represent a brief outline of the portfolio’s objective. There is no guarantee that any manager or product will be successful in achieving the objective described. The strategy used by the money manager listed is not suitable for all investors. This material does not represent a personalized recommendation and does not reflect individual investor’s risk and return goals nor does it serve as the receipt of, or a substitute for, personalized advice from WrapManager, Inc. or any other investment professional.
