FTIA pursues investment opportunities where downside risk appears limited relative to upside potential. FTIA will focus on risk mitigation, divest (or potentially sell covered calls) when investments near full valuation and sell when new information materially challenges an investment thesis.
FTIA offers two strategies:
- a capital appreciation strategy
- a strategy that focuses on total return and has a significant yield component
How resources will be allocated between the two specific strategies will primarily depend on the client’s desire for yield and risk tolerance. Some clients may choose to engage in only one of the two strategies.
Capital Appreciation Strategy
Capital Appreciation Accounts will typically emphasize growth through capital appreciation and be comprised of 10-20 investments. These accounts generally will have low turnover.
The Capital Appreciation Strategy seeks to exceed, after fees, the performance of the S&P 500 Total Return Index on an annual basis.
Total Return Strategy
Total Return Accounts will invest in securities with an attractive yield and will be more diversified with investments on average representing less than 4% of the portfolio.
For the Total Return Strategy FTIA’s objective is to deliver a yield before fees in excess of 4% and a total return (yield and capital appreciation) post fees that exceeds 8% on an annual basis.