Our Investment Philosophy

Insight born of collaboration allows us to invest with conviction.

 

Just as every client relationship is built on dialogue, investing is also an ongoing conversation at Bourgeon.

 

We perform our own analytical research, engaging industry experts, analysts, company managements and specialists in various fields. These sources have been carefully cultivated over many years to provide the intelligence that is critical to developing our thematic strategy and security selections. We find that client input is also instrumental in informing our investment decisions, as many of our clients bring a rarified expertise in their own industries. Together, these insights enable Bourgeon to invest with conviction, taking a firm stance even without the consensus of Wall Street.

 

We utilize an absolute return philosophy, seeking lower volatility, fewer extreme outcomes and competitive returns over the long-term.

As such, we:

  • Strive for growth at a reasonable price.

  • Perform a rigorous risk/return analysis for each equity and fixed income investment.

  • Use research and personal contacts to take advantage of mispriced securities.

  • Adjust asset allocation levels when the risk/reward tradeoff turns unfavorable to preserve capital.

 

Over the years, our portfolio managers have seen almost every conceivable market condition — bull markets and bear markets, bubbles and crashes, recessions and expansions, and diverse political and tax-code environments. To each of these, we’ve responded nimbly, adjusting our investment style to suit market conditions while remaining true to our investment philosophy.

 

Our equity investment process begins by identifying themes in the markets that we believe offer unique opportunities for growth or preservation of assets. We seek out securities with a unique story that fits one or more of our themes on multiple levels. Our primary focus is on companies with strong management, attractive balance sheets and growing cash flow — companies, in other words, that are undergoing positive change. We believe that good companies may encounter short-term difficulties in the markets but can still be attractive over the long term. Unlike commingled investments, we have no stated limitations and can respond numbly to market changes. 

 

Our bond portfolios are managed with the goal of providing predictable income and a degree of safety. Portfolios are constructed using a laddered approach, with an eye towards income requirements and
individual tax circumstances. We believe that bonds are a key component to wealth preservation.