Equity Management

  • High Quality Securities
  • Broad Diversification
    • style (growth vs. value)
    • industry
    • capitalization
    • domestic/international
  • Tax Efficiency
  • Low Turnover
  • Cost Efficiency
MMPW will employ common stocks to achieve long term capital growth in client accounts. Common stocks have historically provided superior returns to those of other financial assets. MMPW believes that an investment in common stocks is a long term endeavor and that the growth of such investments is made more likely by using a blended and broadly diversified portfolio.

Primary elements of our Firm's approach include:
  • Blended portfolios (approximately equal representation between growth and value stocks)
  • Emphasis on large and middle capitalization stocks
  • 50 to 100 individual securities per portfolio
  • Diversification across economic sectors, industries and sub-industries
  • Target sector weightings of approximately that of the S & P 500
  • Exposure to small capitalization and international stocks through no-load mutual funds
Broad diversification and careful security selection are tools used to reduce the volatility (risk) of an investment in the stock market. This focus on the management risk is further enhanced by low turnover (tax efficiency) and minimal transaction costs in the portfolio. The result is intended to be a predictable stream of investment returns that will compound over time to capture or exceed the performance of the U.S. stock market as measured by the S & P 500 Index.

Individual securities are selected using a combination of quantitative and fundamental analysis.

MMPW Equity Universe:
  • Members of S & P 500 Index and other selected large cap stocks
  • Selected Mid-Cap Stocks
  • Selected Exchange Traded Funds
  • Selected American Depository Receipts
Quantitative Screening Process
  • Securities sorted by economic sector, industry and sub-industry
  • Classified as growth or value
  • Ranked by market capitalization
  • Target weighting of economic sectors based on S & P 500 Index
Macro Economic and Sector Analysis
  • Top-down market analysis
  • Sector strength evaluation
Fundamental Security Analysis and Valuation Comparison
  • Revenue/earnings growth
  • Cash flow generation
  • Capacity/financial flexibility
  • Dividend policy
  • Management/corporate governance
  • Valuation measures (P/E, P/Sales, P/Cash Flow, etc.)
The end result of this process is a well diversified portfolio of high quality securities with representation in each economic sector. This strategy is applied consistently across all client portfolios given individual risk profiles, tax status and unique situations.

The performance of the portfolio is monitored on an ongoing basis. To maintain the quality and diversification that is desired, the portfolio is continuously evaluated and re-balanced periodically. MMPW does not engage in "market timing" as related to the significant movement of assets into and out of the stock market. Equity portfolios are generally fully invested in common stocks at all times.

  The purpose of this Web site is to provide general information about services provided by Mitchell, McLeod, Pugh & Williams, Inc. This site is not intended to provide investment advice nor is it in any way a solicitation or offer to sell investment advisory services in any jurisdiction in which it would be unlawful to do so. Visitors to this Web site should neither act nor refrain from acting on the basis of any information found on this site without first obtaining advice from a licensed professional.