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Opportunistic Managed Strategies

Separately Managed Accounts Booklet

Opportunistic Strategy (OS)

This strategy seeks to provide above average returns over time by investing in a mix of US stocks, primarily small cap stocks, as well as international stocks and high yield bonds.  It provides good diversification to many large cap growth focused investments.   While the strategy is a contrarian value based strategy and at times deep value, the allocation will differ materially from many small cap value indices.
​There is a heavy emphasis on special situation stocks. ​
MORE ABOUT OS
OS 3rd Quarter Commentary
File Size: 324 kb
File Type: pdf
Download File

Opportunistic Equity (OE)

This strategy is a more active, concentrated, higher-risk version of the Opportunistic Strategy.
There will be roughly 50 holdings in the strategy.  It will not hold a number of OS holdings but will hold some as a larger percentage of the portfolio.  It will not invest in bonds. It will also not have any allocation to an exchange traded fund or mutual fund.
MORE ABOUT OE
OE 3rd Quarter Commentary
File Size: 332 kb
File Type: pdf
Download File


Investment Process


Macroeconomic Research
​A large number of economic data points are monitored and researched on an ongoing basis.  Bloomberg and other macroeconomic subscription research is utilized to help form opinions.
Security Screening
Data providers are used to help screen the market for financial metrics of relevant securities within the Russell 1000, Russell 2000 indices or various international indices.  Securities are assigned to categories that dictate whether securities are researched further or added to various watch lists. For select securities that screen well, SEC filings, industry reports, company presentations, earnings call transcripts are all researched to determine securities to be purchased and in what quantity. Several watch lists are kept.
Security Criteria
Discounted Cash Flow Analysis
All securities need to be able to pass a discounted cash flow analysis. Relative value metrics are important but discounted cash flow analysis is the most important valuation technique used.
Although circumstances change and the results may prove inaccurate, this analysis is an important exercise to do for every security that is to be added to the portfolio. The objective is to identify securities that still have an undervalued market cap with a 15% discount rate. 15% compounded for 5 years doubles an investor’s money.

Balance Sheet Analysis
Strong balance sheets are preferred but the strategy will invest in companies with exceptional characteristics that possess a weak balance sheet. The bar is set high for companies with weak balance sheets.  Adjustments are made in DCF models for companies that have good or bad balance sheets because balance sheets can hinder or create flexibility to grow earnings.

Catalyst on the Horizon
A catalyst could be a changing business condition or it could be a capital structure decision. The strategy invests in turnaround (turnaround being stocks that are expected to have a big positive shift in financial performance in the near future) stocks but the visibility to that turnaround needs to be apparent.

Management Credibility
Shareholders are the owners of companies and should be treated with respect. Companies whose management appears to have the interests of shareholders as a secondary consideration can often times have depressed stock valuations that persist for a long time. One of the best forms of shareholder friendly activity is a dividend and companies that pay dividends, even if it is a modest one, are viewed favorably.

Mispriced Embedded Options
Some times change within an underperforming business unit or an external event can change the valuation of a company significantly but the market appears to be ascribing little chance to those events occurring. The strategy attempts to identify those types of options embedded in the valuation of a company.

Allocation & Performance


The Waterfront Opportunistic Strategy began in 2016.  The Waterfront Opportunistic Equity Strategy began in 2020.
​
We are proud of our performance and would be happy to share with you.  Please contact:
Picture
Trent Grissom
Have any questions about Waterfront Asset Management Services?
Contact Trent Grissom, our Vice President & Director of Business Development, via phone at
​913-951-5800 or via email by selecting the link below.
Email Trent

Learn more about Waterfront Asset Management (WAM).

asset management
balanced / equity strategies
CUSTOM STRATEGIES
*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.

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6711 W 121st Street
​Overland Park, KS 66209
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​​(913) 951-5800 
(855) 875-0100

*Waterfront Wealth Inc. is currently registered as an investment adviser with the Securities and Exchange Commission.  State securities laws require that the firm be registered, or qualify for an exemption from registration, in order to provide investment advisory services to residents of a particular state.   Should you choose to contact the firm, any substantive communication between you and the firm will be
conducted by a representative who is appropriately licensed, registered, or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. 
**All content on this site is for information purposes only and should not be considered investment advice.  Material presented is believed to be from reliable sources and no representations
are made by our firm as to another party's informational accuracy or completeness.  
***Waterfront Wealth Inc. and its representatives do not provide tax or legal advice and nothing herein should be construed as such.  Always consult with your tax advisor or attorney
​regarding your specific circumstances.
  • Home
  • About Us
    • Advisors & Associates
    • Our Process
    • Contact Us
  • Services
  • Asset Management
    • Opportunistic Managed Strategies
    • Balanced & Equity Strategies
    • Custom Strategies
  • News & Events
  • Access Online