|
Guyasuta Investment Advisors provides personalized equity and fixed income portfolio management to high net worth individuals, families, and institutions. The independent fundamental research that we conduct is crucial to meeting our clients' objectives over the long term. It provides a foundation for identifying attractive opportunities and monitoring our current holdings.
On the equity side, the Guyasuta selection process first screens to identify well-financed, highly profitable companies that generate uncommonly high levels of free cash flow compared to their current stock price. The ability to generate more cash than needed to support current operations and expected growth places a company in a position to enhance shareholder value through a variety of favorable options such as dividend increases, debt reduction, cash acquisitions and stock repurchases.
The absence of growth can be the downfall of strictly deep value strategies. Therefore, our next step pursues companies that not only produce significant cash flow but also exhibit above average sales growth, based upon growing end markets, rising market shares and new products. Rising revenue is the engine of future cash flow. This combination of high free cash flow yield and revenue growth should drive superior equity returns on a sustainable basis.
In terms of fixed income, we specialize in managing customized laddered maturity bond portfolios. Our emphasis is on the preservation of capital and consistent generation of income by focusing on bonds with only the highest credit quality. In our experience investors are rarely adequately compensated for the additional risk associated with investing in lower quality issues. We conduct our own credit analysis, insisting on strong balance sheets and improving fundamentals and do not rely on either insurance or underlying ratings. By designing a customized mix of Treasury, corporate, and municipal bonds for each client we seek to maximize after-tax yield within the constraints of minimizing credit risk, and to create a stable income stream.
|