At Punch & Associates we believe that it is possible to achieve consistent and superior investment returns through all market environments by using a disciplined and opportunistic style of investing, coupled with a willingness to look different from other “mainstream” investors.
The most important investment decision involves the allocation of client assets among different asset classes. This decision will determine an account’s variability and ultimately, its return. Once we determine your most appropriate asset allocation, rigorous fundamental analysis provides the key to successful security selection.
We believe that all parties involved in the investment process, both advisors and clients alike, must clearly understand the unique investment parameters and objectives of the client.
- We believe that many asset categories should be represented in a well-diversified portfolio where the focus is on long-term wealth creation and preservation.
- We believe in remaining flexible with respect to asset allocation.
A specific asset class that outperforms others is usually preceded by a severe and persistent period of underperformance by that same asset class. Investors who seek superior performance over the long run should be willing to endure periods of underperformance in order to minimize risk.
Critically important to managing risk, investors should be “unafraid” to miss out on the next “big thing” when the risks look too high. At Punch, we believe that favorable returns are a natural by-product of controlling risk.
“Fundamentals change slowly, but the attitude toward those fundamentals often changes rather quickly.” – Howard Punch
We believe that, while conservative in nature, fixed income strategies can be opportunistic and used for wealth creation, as well as wealth preservation. Financial markets can go through extended periods where the only return from securities comes from the income they generate. For this reason, we use income securities tactically in most client portfolios.
We believe that owning companies is the cornerstone of wealth creation. We do not fixate on the style or size of the companies we place in client portfolios. Rather, we utilize a multi-cap approach, looking at businesses of any size that make long-term sense. We will only purchase companies at prices we believe offer substantial long-term opportunity.