In the money management business, successful investing begins with a partnership between the client and their advisor. Together with the client, we develop a customized investment portfolio designed to meet current and future needs.
Our primary mission is to provide our clients with the highest level of personalized service and portfolio customization.
In managing portfolios for our clients Welty Capital Management has two investment goals:
- To achieve superior investment returns.
- To control the level of risk assumed to achieve those returns.
To meet the goals of our clients, we invest in the stocks of companies which are market leaders in their respective
industries as well as possessing superior management.
To augment the stock holdings in our core portfolio we use
exchange-traded funds (ETFs). We invest in ETFs to gain access to global markets as well as small capitalization stocks. ETFs allow us to benefit from the faster growth in more volatile segments of the capital markets such as bio-tech and technology, while minimizing the risk associated with individual stock selection in these areas. While most of the names in our core portfolio are well known, best-in-class leaders, we do leave the door open to invest in smaller lesser known companies when an unusually attractive opportunity arises.
Our stock selection process is heavily dependent on internally generated fundamental research. Company fundamentals are updated on a regular basis, either through site visits or telephone conversations. We maintain good working access with members of senior management of the companies we invest in. We also use the security research departments of leading Wall Street brokerage firms. During the past 28+ years, Richard Welty has established strong working relationships with security analysts whom he believes are experts in their respective fields.
In managing individual portfolios, we utilize specific buy and sell disciplines. Buy decisions are based on individual company fundamentals and are influenced by overall market trends and other factors.
Welty Capital Management evaluates the following when making a sell decision:
- Price target achieved
- Breakdown in original fundamentals
- Weakening earnings momentum
- More attractive alternative is found
Fixed Income Investments:
Our fixed income investment philosophy is based on the
Preservation of Real Capital
This is accomplished by strict attention to a bond’s financial characteristics. We strive to invest in bonds of companies with good management and financially conservative policies.
This is found in bonds with improving fundamentals. Research can lead to finding bonds which are poised for improvement.
Minimal Emphasis on Forecasted Interest Rates
Superior bond returns are not highly dependent on accurately forecasting interest rates. Market timing in the fixed income market place has proven not to work over long periods of time. This philosophy dictates diversifying in terms of bond maturities.
We attempt to control risk through bond diversification in terms of credit quality and maturity. Wall Street research is used to keep on top of a bond’s investment fundamentals.