Our Enhanced Equity Index is Changing the Way the World Invests
What drives our client results is portfolio efficiency. Our optimized indexing delivers proven results. Each portfolio is built and managed for our private client’s growth and needs. Because results are directly correlated to portfolio efficiency, we tailor each portfolio using eight principles to enhance investor results:
- Quality – An investor should consider an index’s performance over both the short and long-term prior to deploying capital. While the size factor should be considered, a company’s inclusion and weight in an index based predominately on size may not align with the objectives and risk tolerance of the investor. Quality matters because it improves a company’s ability to: 1) Fund their own operations, which is especially important in tight credit markets. 2) Capture new growth opportunities. 3) Return capital to shareholders. 4) Exploit high value M&A activity in down markets.
- Ownership – Unlike industry products where investors are pooled, the Linden Thomas & Company institutional portfolios are managed through individual holdings.
- Yield – Our fixed-income portfolios are managed directly for each investor based on their specific income need. The net cash flow of holding goes to clients’ portfolios directly.
- Portfolio Construction – Each portfolio is tailored specifically to each of our client’s growth and income needs.
- Pricing – Unlike pooled products, our portfolio pricing is direct and transparent. Investors don’t pay the unnecessary hidden cost of mutual funds.
- Team – Our team works together monitoring allocation of equities and each fixed-income portfolio to ensure client results are maximized.
- Control – Because each investor owns securities directly it gives them control of other needs like tax-loss harvesting and charitable gifting.
- Total Transparency – All portfolio positions are held in each client’s name so monitoring and results are made easy.