Investment Philosophy and Process

Our Investment Philosophy and Process

Large Cap Value: It is our belief that sound investment results over time emanate from investing in high-quality businesses at a time when their stocks are selling at a meaningful discount to their intrinsic values. A fundamental, research-based portfolio of 30-40 stocks provides the optimal mix of performance potential and diversification.

Dividend Income: The twin goals of above-average current income and lower portfolio risk can best be achieved by investing in mature, successful companies with high-quality balance sheets. The companies must have a history of stable and growing dividend yields that are currently greater than the S&P 500 yield. A portfolio of 20-30 stocks should provide the optimal mix of current income and below-market volatility.

ESG Equity: A company’s attitude and actions toward Environmental, Social, and Governance issues can give good insights into their business integrity and long-term focus on building a business to benefit all stakeholders. We believe this heightened awareness and focus has created an investment opportunity, whereby investors could do well by doing good. In 2021, Matrix launched two ESG-focused products based on the two longstanding equity strategies outlined above – ESG Large Cap Value and ESG Dividend Income. These offerings utilize the same process as the original strategies, with the additional focus on meeting our ESG criteria.

Fixed Income: The role of fixed income in a client’s portfolio is to generate income while preserving capital. We believe this is best achieved by building a diversified portfolio of high-quality bonds (A-rated or better) with short-to-intermediate portfolio duration. Generally, no bond has a maturity of over 15 years at the time of purchase. Each portfolio is tailored to client-specific requirements for income, risk aversion, and tax sensitivity.

Wealth Management: For those seeking a more diversified approach across a broad variety of asset classes, with lower total variability compared to overall equity index returns, we offer the Matrix Complete Wealth Management (MCWM) program. It uses an “open architecture” approach to build broadly diversified portfolios from across the array of suitable asset classes, that we think can satisfy a specific client’s needs and wants.