office (415) 956-8700
fax (415) 989-9459
www.macinv.com

Investing with us

Portfolio Structure

      Client investment selection is a collaborative effort.  Given the active nature of our equity and fixed income management styles, our investment committee meets several times a week to discuss the ongoing economic environment and current market conditions.  We also monitor the global financial markets and political developments influencing the investment outlook.  We maintain a Core Value Portfolio which comprises what we believe to be our best equity investment ideas at any given time. 

      All portfolios are individually constructed and invested to meet the specific objectives of each client.  Through the course of our evaluation, the committee members discuss prospective investment ideas from our Core Value Portfolio and analyze how different equity and fixed-income opportunities might fit into a client’s portfolio.  Tax considerations, growth or income needs, and individual risk profiles typically differentiate client account strategies.  The use of technical analysis as a tool to guide market timing is also discussed.  This process enables us to maintain a disciplined approach in the final selection process.

     Our practices assure that individual needs and the specific client investment objectives are understood and implemented by the management group.  Throughout the process each account is exposed to our collective array of ideas and investment opportunities with appropriate checks and balances established, insuring the comprehensive delivery of client services.

     It should be noted that investing in securities is inherently risky, and a client's portfolio may not achieve its investment objectives.

Equity Investment Philosophy

Value Management Style. Our equity investment philosophy is to attempt to maintain and enhance the long term purchasing power of our client’s principal and income.  We believe that the best way to fully maximize the compounding effects on capital is to strive for positive, absolute performance.  We look for solid business opportunities that we believe can generate sustainable cash returns for our clients’ benefit.  Investment candidates undergo a bottoms-up fundamental review which includes each company’s business model, returns on invested capital, and potential for free cash flow growth.  The investment committee thoroughly analyzes valuation and potential risk/reward before committing to include an investment in our Core Value Portfolio.  Top#

Portfolio Construction. Each client account is managed as a separate portfolio in an attempt to meet the specific needs of the client.  A key determinant of long-term portfolio performance is a balance between current income and capital appreciation; both sources enhance value.  Specific client account decisions reflect what we believe to be the most appropriate investments from the Core Value Portfolio. Top#

Risk Management. We strive to manage general market and issue specific investment risk through diversification, which is essential to long term portfolio success.  Cash and cash-like substitutes are used strategically in times of market uncertainty, and held in anticipation of future opportunities.  In conjunction with our portfolio construction and decision-making processes above, we use technical analysis to gain an understanding of the supply and demand for a given stock in the market.  Supply and demand analysis for a stock can provide a useful indication of the directional strength of a stock at potential turning points, and can be best utilized to protect investment gains from slipping away.  The firm’s investment approach is designed to protect client assets during weak markets, and for competitive returns in strong markets.  Top#

Fixed Income Philosophy

Total Rate-of-Return Style. Our fixed income investment philosophy strives to improve investment results through an actively managed total rate-of-return strategy.  This style seeks to capture interest income as well as price appreciation while maintaining investment credit quality.  Investment objectives in order of importance are: to preserve the accounts’ capital, maintain portfolio liquidity and maximize long-term investment results. Top#

Portfolio Construction. In an effort minimize risk to capital we invest in US Treasuries, Federal Agencies (including collateralized mortgages), corporates that are investment grade when purchased, money market securities and preferred stock.  Tax-advantaged portfolios are concentrated in investment grade (at the time of purchase) and insured municipal short-term notes and bonds.  Top#

Risk Management. Like equity investments, fixed income portfolios are exposed to market risk (price fluctuations) and asset risk (deterioration in the issuer’s credit rating).  We strive to manage market risk through an adherence to our economic outlook; we monitor and adjust portfolio duration in anticipation of future interest rate trends.  We attempt to protect asset value by assessing the issuer’s underlying credit quality while assuring that portfolio holdings are investment grade or higher at the time of purchase.  Top#