Tagmata Value

This strategy aims to purchase corporate equities at a discount to the intrinsic value of the company. This is a long term and patient approach to investing and the projected investment period when purchasing an individual equity is typically two to five years. The actual holding period may differ for a variety of reasons, including a change in the company’s prospects or business environment, change of management, dramatic price changes in the stock price and other factors.

The approach to value investing is flexible. Rather than adhering to one school of value investing, methodologies utilized include sum of the parts, deep value, growth at a reasonable price, use of multiple valuation measures, relative value and other value investing methodologies. With twenty years in corporate mergers and acquisitions experience, Matthew Gensler, the manager of this program, realizes that there are many paths to corporate valuations, and he has used this experience in his subsequent investment management career.

Risk management is an integral component of this portfolio. This can result in substantial allocations to fixed income and to a lesser extent, alternative investments. This portfolio is highly diversified across asset classes, geographies and market capitalizations. The objective is to provide growth and income while managing risk. Portfolios typically operate at significantly lower betas than the S&P 500.

Objective:

  • Tagmata are symbolic of our strategy. The Tagmata were the heavy cavalry component of the Imperial Guard of the Byzantine Emperors, dedicated to the survival of the King and Empire. Small, elite and nimble forces, the Tagmata were highly effective defenders of the Empire. Similar to the
  • Tagmata our aim is to harness our intellectual resources and value investing experience to protect and grow clients’ investment assets.
    Conservative strategy to provide long term total returns, with an emphasis on current income and long term capital appreciation.
  • Value investing strategy predominates in management of portfolio.
  • Significant fixed income allocation aims to lower portfolio risk and volatility.

Investor Profile:

  • Suitable for conservative investors seeking long-term total returns and lower portfolio volatility while utilizing a value investing investment philosophy.

Strategy:

  • Portfolio manager is a practitioner of value investing. This philosophy was developed by Columbia Business School Professor Benjamin Graham and is best known to the general public by his most famous student and disciple, Warren Buffett.
  • Looks at equity investing as the equivalent of owning part of a business. The objective is to purchase these stocks at a substantial discount to the intrinsic value of the underlying business(es).
  • Undervalued companies are evaluated on a global basis, although the largest investments in a single country will be the United States.
  • Preferred stock, bond and other fixed income investments are made with the objective of providing attractive income and lowering portfolio risk. Fixed income should provide a cushion in times of equity market downturns.

Selection Process:
1. Start with a series of ETFs that captured the range of key asset classes determined to be necessary to build an optimally diversified portfolio.