Creating an Investment Portfolio with Pendragon Capital Management
“Diversify Your Investments.” – Sir John Templeton
The creation of an investment portfolio begins with its clients and a detailed discussion of:
- Financial Goals
- Risk Tolerance
- Liquidity Needs
- Investment Horizon
- Overall Financial and Tax Picture
Given an understanding of the above, Pendragon constructs a customized portfolio for its clients that reflect these attributes. In building the portfolio, Pendragon employs a combination of strategies and tactics.
Equity Strategies for Wealth Management
Core Value Equity Selection
Investments are selected by following the principles of Graham & Dodd of Columbia Business School.
The portfolio invests in low P/E, low P/B securities, “growth at the right price” securities, and shareholder-friendly companies.
The emphasis is on small to mid-cap companies.
Dividend-Paying Stock Selection
These stocks are selected to generate either higher tax-advantaged income or to have the potential to increase their dividends.
The focus is on mid to large-cap companies.
Balanced Strategy for Managing Wealth
Index, Sector, and International ETFs
Exchange-Traded Funds are a diversified way to invest in indices and sectors of the market that we believe will outperform.
The strategy includes investments in foreign country ETFs.
Fixed Income Strategies Investment Portfolios
Intermediate Taxable Bonds
Individual corporate bond issues are chosen with staggered maturities from one to ten years.
The structure provides flexibility, liquidity, and some protection against rising rates through reinvestment of the bonds that mature each year.
Intermediate Municipal Bonds
Structured like the Taxable Bonds but Municipals are tax-exempt bonds issued by state and local jurisdictions.
Specialty Investment Strategies
Pendragon Capital Management also offers the following specialty investment strategy portfolios.
Pendragon Special Value Fund LP
This portfolio, structured as a limited partnership, invests primarily in companies in the banking, real estate, leasing, and specialty financial services industries.
In addition, the partnership seeks out opportunities in all industry groups in business turnarounds, spin-offs, or other special situations.
Pendragon Trading Plus Portfolio
The Pendragon Trading Plus portfolio employs a disciplined short-term trading strategy based on a combination of dollar-cost-averaging and reversion-to-the-mean.
This portfolio uses levered Index ETFs as the principal trading securities. These are complemented by holdings in MLPs, dividend-paying stocks, REITs, and BDCs to off-set volatility and provide income.
The Trading Plus Portfolio is not based on the value investing process inherent in Pendragon’s other portfolios. Rather, Trading Plus seeks capital appreciation through a short-term trading strategy.
Investors must understand that as a short-term trading vehicle, account values may fluctuate significantly.
Pendragon Climate Impact Investment Portfolio
The Climate Impact Portfolio is designed to generate returns from investing in companies that are working to solve the planet’s climate and environmental challenges.
The strategy will invest in the companies that we believe will succeed in developing technologies and services to combat climate change and improve the planet’s environment. Also, the managers will short securities of companies where business models will be threatened as climate change continues to grow in importance and in light of new technologies.
Note: Our clients may have different combinations of strategies and may have different individual investments within the various strategies depending on the clients’ goals, needs, and risk tolerance as well as available funds, tax situations, and market conditions.
To Learn More About Pendragon Investment Portfolios
If you’d like to learn more about Pendragon Capital Management’s investment portfolios, be sure to contact us. We look forward to answering your questions.