Portfolio Management

We bring a rigorous analytical approach to our stock selection process. We employ both qualitative and quantitative research techniques to choose the most promising equity investments for our clients. We then gather additional information through our network of industry and company contacts. Finally, we observe disciplined risk management and sell criteria in the construction and management of client portfolios.

We monitor each portfolio daily to ensure that every investment continues to meet our quality and performance standards and that the portfolio mix remains aligned with your unique objectives. We keep in close touch with our clients and update their investment strategies and portfolios whenever their needs, circumstances or objectives change.

Rigorous Research

Ensemble’s “bottom-up” investment process focuses on identifying outstanding companies with strong revenue and earnings growth, sustainable competitive advantages, and superior management. In addition to traditional securities analysis, we give great weight to our own years of experience and judgment and to our extensive network of personal industry and company contacts. We believe that successful investing is both an art and a science, and that no amount of statistical analysis can replace the personal evaluation of management’s drive, talent and character.

We buy both emerging and established growth companies, as well as more mature companies where we see a catalyst for renewed or continued growth that is as yet unrecognized by the market. However, great companies are not always great investments – the price and timing must be right. We seek always to purchase companies at low valuations relative to their earnings potential, their track records and their competitive standing. Once we decide to acquire shares, we use market data and sentiment analysis to help identify optimum entry points for positions that we hope to hold for one to five years or more.

Risk Management

At Ensemble, we believe that risk management is every bit as important as stock selection. In addition to our thorough scrutiny of individual securities, we attempt to reduce risk by diversifying equity portfolios among up to 25 stocks, taking care to limit concentration in any one company or industry. We also construct portfolios in accordance with each client’s tolerance for both business risk and market risk, tailoring the mix of stocks from very conservative to less-seasoned and more volatile issues.

Because we are trying to maximize our clients’ absolute returns, we often take as many as four weeks to fully invest your portfolio as we look for optimum entry points in each position we purchase.

Disciplined Sell Criteria

We utilize clearly defined sell criteria to realize profits and protect against losses. While we are long-term investors and always tax sensitive in our investment process, we believe disciplined sell criteria are a critical component of successful portfolio management. We will sell a stock if it surpasses our dynamic price target, there is a significant, negative change in the company’s outlook, or our view of industry fundamentals deteriorates. A position may also be sold or trimmed if a stock becomes over-weighted due to price appreciation.

Tax Efficiency

For taxable accounts, we always manage your investments with an eye on tax consequences. Our strategy is to make long-term investments that generate long-term capital gains, and when appropriate, to capture short-term losses to enhance after-tax returns. With your permission, we will work with your accountant to time the realization of gains and losses to minimize your overall tax liability.