Opportunistic Equity Strategy
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The Opportunistic Equity Strategy was started in 2020 to provide an option for investors looking for compelling mid-term risk vs. reward investments that are either not widely followed by Wall Street analysts or perceived to be misjudged by analysts. While the strategy does invest in S&P 500 companies, the majority of the allocation is to small cap stocks with some international stocks. It is meant to be a complement to investors that have money invested in the S&P 500. The strategy invests in many small-capitalization cyclical stocks and therefore has a high risk. However, it is believed there are some unique compelling valuations that over a 2 to 3 year time period are able to provide strong returns.
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| OE Fact Sheet |
FAQs:
What type of strategy is this?
A contrarian investment approach that seeks to identify equities with a compelling 2 to 3 year risk vs. reward. A number of factors determine asset allocation.
What kinds of stocks are held and how many does the strategy hold?
While there is an allocation to large cap US stocks and some international stocks, the majority of the allocation is to mid and small cap domestic stocks. The strategy targets approximately 50 holdings.
How risky is the strategy?
Risk is generally higher than the S&P 500 because there is a heavy small cap allocation. In addition, the strategy is allocated to many cyclically sensitive stocks that offer compelling long-term valuations albeit at the expense of greater short-term volatility.
Why does Waterfront offer the strategy?
We believe it is a good complement to large cap growth investing. While earnings tend to be more sensitive to economic conditions than many large cap growth companies, valuations are often heavily discounted.
Is it a value strategy?
Yes, but the allocation differs materially from small cap value indices. There is an emphasis on companies with unique valuation considerations and also companies that have prospects for expanding margins. Margin expansion is one the primary determinants of stock outperformance.
How can I Invest in the Strategy?
The strategy has a $100,000 minimum with a 50 basis point management fee. Funds are held at Wells Fargo Clearing, our custodian.
A contrarian investment approach that seeks to identify equities with a compelling 2 to 3 year risk vs. reward. A number of factors determine asset allocation.
What kinds of stocks are held and how many does the strategy hold?
While there is an allocation to large cap US stocks and some international stocks, the majority of the allocation is to mid and small cap domestic stocks. The strategy targets approximately 50 holdings.
How risky is the strategy?
Risk is generally higher than the S&P 500 because there is a heavy small cap allocation. In addition, the strategy is allocated to many cyclically sensitive stocks that offer compelling long-term valuations albeit at the expense of greater short-term volatility.
Why does Waterfront offer the strategy?
We believe it is a good complement to large cap growth investing. While earnings tend to be more sensitive to economic conditions than many large cap growth companies, valuations are often heavily discounted.
Is it a value strategy?
Yes, but the allocation differs materially from small cap value indices. There is an emphasis on companies with unique valuation considerations and also companies that have prospects for expanding margins. Margin expansion is one the primary determinants of stock outperformance.
How can I Invest in the Strategy?
The strategy has a $100,000 minimum with a 50 basis point management fee. Funds are held at Wells Fargo Clearing, our custodian.
*The investment(s) discussed may not be suitable for all investors. Investors should make investment decisions based on their own specific investment objectives and financial circumstances.
**Additional information is available upon request.
***Any investment contains risk, including the risk of total loss, fluctuating prices and uncertain returns.
**Additional information is available upon request.
***Any investment contains risk, including the risk of total loss, fluctuating prices and uncertain returns.