The team at Willow Group will involve you in extensive discussions that will lead to a mutual understanding of your desires, needs and risk tolerance, resulting in an investment program that will receive the sort of attention you will not get from a large financial institutions or most competitors.
Each client at Willow Group is assigned an advisor or portfolio manager who will work closely with you to determine the right mix of strategies to meet your individual circumstances.
You can expect regular communication from us, with direct access when you need it. We put substantial time aside to speak on the telephone. Expect regular valuation reviews with historical costs to help you gain a clear perspective. Expect extensive notes from our investment team that will offer our perspective on the equity and fixed-income markets, the economy – both local and international, current market valuations, deep analysis, performance and other prime factors that affect your capital and our management of it. We communicate with ideas that are easy to understand and integrate.
Willow Group offers you a professional team dedicated to fully develop your portfolio, now and into the years ahead. Our primary investment principles of always considering the long term, managing risk, remaining dynamic and flexible, reducing asset turnover and transaction charges, maintaining a prudent sell strategy, married to our dedication to a customised service, allow us to offer you, in our opinion, a unique value unlike anything you’ve experienced before.
Every client relationship is unique and so every portfolio is customised using our private in house methods. Additionally, we can look deep to determine if a client needs a specific strategy to complement their existing holdings.
Below is an overview of some of the solutions that we utilise.
The investment objective of our Small Cap portfolio is to seek long-term growth of capital by investing in securities that our firm believes have excellent business strength and prospects for growth, which are trading significantly below our estimate of their current worth.
Wiilow Group’s Small Cap process begins by screening stocks traded on major markets to highlight outstanding businesses. Companies are usually limited to those with market capitalizations of less than $4 billion at the time of investment. We further narrow the universe of publicly traded stocks to a list of potential candidates with rankings based on the fundamental factors we emphasize:
- Significant profitability as measured by high returns on equity and assets
- Sustainable profitability as reflected by continuing earnings growth
- Solid balance sheet
- Attractive valuations relative to their peer group and the overall market
- Niche business
- Solid management team
- Covered by only a few, if any, sell-side analysts and low institutional ownership
- Debt-to-capital employed must not be leveraged beyond conservative standards
- Level of insider ownership
While we are predominantly a bottom-up manager of Small Cap, we do believe certain market sectors perform better than others at distinct points in each business cycle. As a result, specific sectors may be overweighted or underweighted but usually will not exceed two times the benchmark sector weighting. The maximum exposure to any individual security is generally a 5% position. Portfolios tend to be fully invested.
A sell discipline is equally important in the management of a client’s portfolio. Essentially, when a company falls outside the parameters that made it a buy candidate, the stock will be considered for sale from the portfolio.