Our Approach
Because we are independent, we have the
flexibility to offer what's best for each client
The Value of a Repeatable Process
Our investment process is simple and straightforward – it’s consistent, and repeatable. It’s important to us at South Texas Wealth™ that we are able to articulate our financial planning strategies in a manner that’s easy for our clients’ to understand. Because as Albert Einstein once said, “If you can’t explain it simply, you don’t know it well enough.”
South Texas Wealth relies on a repeatable, research-driven process to develop investment strategies and then construct personalized allocations that are aligned with our individual investors needs, goals and risk tolerance. Each of our process-driven, time-tested strategies are designed and executed by a dedicated team of portfolio managers as well as fundamental and technical analysts and strategists.
4 Keys to Disciplined Investing
Our experienced team strives to employ a repeatable, research-driven process. this includes:
- Disciplined research and due diligence to select high-quality, well-run companies
- Rigorous evaluation by analysts and STW prior to implementation
- Eliminating investments that are outside the portfolio’s risk profile by applying a sequence of tests
- Developing investment strategies based on the ultimate end-goal for the individual investor
Owners, Not Renters
We prefer to be owners of high-quality companies, rather than renters of stock. Most equity owners look for short-term instant returns – a rental approach – chasing performance over 2 to 3 quarters. In contrast, we take a long-term approach focusing on how the company is positioned in its industry over a 3 to 5 year time horizon, an “owner” approach. This puts our portfolios in a better position to ride out volatility over the short term.
We Execute Our Best Ideas
We make our best ideas count through concentration of positions where we see value and upside potential over a 3 to 5 years span. Typically our strategies here hold only 20-50 different positions as opposed to many over-diversified mutual funds which may hold as many as 500. This method provides a concentrated portfolio of companies with upside potential, regardless of the correlation of their returns. While it may lead to swings in portfolio value due to the concentrated nature, there is a much better chance of
outperforming many other investment strategies by capitalizing on these opportunities.
Protecting wealth - that's our goal. Putting clients first - that's our guarantee.
- Jeremy Sakulenzki, Founder & CEO
Transparency
Transparency in fees, transparency of information, and ongoing communication are the primary keys to our investment process. Research reports, trade notices and strategy performance are shared openly with our clients. Fee transparency with our investment strategies allows our clients to truly know the total fees they are paying on any given portfolio. Ongoing communication with the investment advisor through regularly scheduled meetings, portfolio updates and direct communication whenever needed – this allows us at South Texas Wealth™ to provide an unprecedented level of transparency.
By leveraging our disciplined investment process, our clients receive transparency of information, seamless proactive service and the trust and accountability required to help meet all of their financial objectives.
Focus on Protection of Irreplaceable Capital
Our Absolute Return Strategy is a strategy designed for our clients who have irreplaceable capital and are seeking capital preservation over appreciation. The objective is to participate in advancing markets and to protect capital in sideways to negative markets. The tactical nature of this strategy allows us to include a wide range of styles and strategies focusing exclusively on low-volatility and total return over market cycles – both short-term and long-term.
- Portfolio Must Emphasize Risk Management
- Financial Advisors Need To Use A Larger Playbook and Broaden the Range of Investment Options
- Combines Fundamental Research Conducted By Our Team of Financial Professionals with Technical and Quantitative Data To Ensure Adequate and Extreme Risk and Asset Protection
Our Investment Process
Step 1 - Identify Long-Term Investment Opportunities
Our financial professionals identify opportunities and create portfolios based on asset and sector classes believed to be in a long-term upward trend. Then we integrate and synthesizes independent analysis with comprehensive market data such as technical, fundamental and quantitative data as well as insights from internal independent analysts.
Step 2 - Develop Independent Investment Ideas
Here we seek companies, sectors, and investment vehicles that are positioned to potentially benefit from identified long- term opportunities, low expense ratio and liquidity.
Step 3 - Optimize Trading Decisions
We utilize multiple analysis tools and techniques to enhance investment decisions including bottoms-up, fundamental analysis by some of the most talented financial professionals in the industry to determine fair market value of assets and investments. This is then paired with technical analysis to ensure appropriate investment timing.
Step 4 - Enhance the Investment Decision Process
We constantly monitor investment behavior trends to such as insider activity, consumer, business, and market sentiment.
