|
ABOUT OUR FIRM
Groesbeck
Investment Management Corporation is an employee-owned, SEC registered
investment adviser, providing equity portfolio management services to
endowments, foundations, pension plans, trusts, Taft-Hartley accounts, IRA’s
and high net worth individuals. Since our founding in 1993, we have
provided investment performance over time that is comparable to the
S&P500 return through a disciplined, risk-sensitive process. It is
understood that performance may lag the S&P500 Index in any given year or
subset of years.
OUR INVESTMENT STYLES
Groesbeck
Investment Management offers two distinct equity portfolio management
investment strategies depending on the client’s requirements and
objectives. Our Growth of Income style seeks to provide a
growing stream of current income and a total return in excess of the S&P
500. Our Growth style seeks to generate higher than market
returns, primarily through capital appreciation. The investment
processes of these two portfolio management strategies are summarized below.
GROWTH OF INCOME STRATEGY
Our
philosophy toward growth of income investing is to seek above-market
portfolio returns through investment in securities of companies that our
analysis indicates have the ability to increase earnings and dividends at a
faster rate than their industry group and/or the stock market. We
construct diversified portfolios of stocks that include both growth and
income characteristics. The inclusion of high-yielding growth equity
issues allows us to invest in growth-oriented stocks at lower dividend yields
and still obtain an overall portfolio income yield that is well above that of
the general stock market. In addition, this process leads to dividend
income growth that is faster than that of corporate dividend growth in
general and is significantly faster than the consumer price inflation rate.
We
start with higher-than-market yield and stress growth of portfolio income at
a rate faster than that of the market averages. Portfolio income growth
is accomplished in two ways. First, we select companies that should
experience relatively rapid dividend growth rates and target companies that
we believe will increase dividends every year. Second, we augment this
growing stream of income by periodically switching from lower yielding
equities to higher yielding issues in order to raise the portfolio income
level. In this manner, we can increase the income while also moving
from relatively overvalued (lower yield) to relatively undervalued (higher
yield) issues.
GROWTH STRATEGY
Our
approach toward growth investing is to select the stocks of companies which
we believe have above-average earnings growth prospects. We purchase
the stocks of companies whose future earnings growth is estimated to be at
least 10% annually. Companies selected must meet our standards for
financial strength, profitability and sustainability of future growth.
We pay particular attention to revenue growth, because we believe the only
sustainable growth comes from increased revenues, rather than simply through
profit margin improvement. As part of the valuation process, stock
purchases are made at price/earnings ratios that bear a reasonable
relationship to the anticipated future rate of earnings growth. The
ratio of stock price to trailing twelve month revenues per share is also part
of our analysis.
Once
a growth portfolio is constructed, we continuously monitor the earnings
progress of each company in the portfolio. Companies that fail to meet
our earnings growth expectations will normally be sold and replaced with
stocks that meet our investment criteria. We believe that successful
growth investing requires a portfolio earnings stream that is growing at
above-market rates. By constantly pruning those issues that fail to
meet our expectations, the portfolio will remain vibrant and should
experience satisfactory earnings growth over the long term.
At
Groesbeck, you will find us to be client friendly, flexible and devoted to
our investment discipline. We work closely with our clients, understand
their investment objectives, and strive to produce results which exceed their
expectations.
FIRM PROFILE
- Assets under
management .......... $73.1 Million (9/30/24)
|
|
