A Distinctive Approach To Investment Management

The word “ensemble” means a group of people or things, deliberately put together to act in harmony. This concept underlies many aspects of how we conduct business at Ensemble Capital and, most importantly, forms the core of how we manage assets.

Most investment managers draw upon only a subset of successful investment styles when creating their own strategy. At Ensemble, we recognize the large body of research that shows that metrics from value-based strategies tend to outperform over time. We also know that the stocks of companies that grow earnings faster than their competitors do better than stocks of those that do not. In addition, studies show the value of stock price momentum and contrarian sentiment indicators as elements of a successful investment management strategy.

These three components — value strategies, growth opportunities, and pertinent market data — intersect to form the Ensemble approach. Rather than limit ourselves to a single dogmatic outlook, we have combined the best attributes of the major investment styles and created our distinctive strategy.

In general, we seek companies with superior business models that we believe can produce strong earnings growth, yet trade at a discount to their fair value. We then use market data and sentiment indicators to better pinpoint our entry and exit points.

Focused and Consistent

We apply our strategy consistently over time, which results in a mix of large and mid capitalization stocks with a balanced allocation of growth and value. Generally, our portfolios consist of about 20 companies from a diversified group of sectors and sub-industries. This approach allows us to keep our clients’ money in our best ideas, while still capturing the risk reduction benefits of portfolio diversification.

At Ensemble, we believe that the most important risk facing investors is permanent loss of capital. While we strive always to outperform the various market benchmarks, we believe that our most important obligation is to maximize the value of our clients’ capital in every market environment.

Each Portfolio is Unique

Our approach is customized. We will build you a unique portfolio to realize an individual goal that fits within your overall financial picture. We will recommend allocations that complement your current holdings, including low cost basis securities, private equity, or other special assets you may own. Whether you have long-term capital appreciation goals, current income requirements, or a combination of the two, we will construct a portfolio designed specifically for your needs.

An Independent Firm

Ensemble Capital Management is a fee-only investment manager, independent of Wall Street influences. We are not paid commissions and have no incentive to sell or recommend any particular security. Since we base our fees on a percentage of assets under management, we are clearly aligned with our clients’ interests.

We benefit when you benefit: when your portfolio grows and you achieve your financial objectives.