Stack Financial Management offers two different equity investment options. While the individual stocks held in Capital Appreciation and Value & Dividend portfolios differ, both strategies follow the same safety-first investment philosophy focused on risk management.  The selection should be based on one’s investment objectives, tolerance for volatility, and the desire or need for income distributions.  Click here for more information regarding portfolio construction and fundamental stock selection. 

Capital Appreciation Portfolios

Designed for investors whose primary objective is conservative growth, income is not a primary consideration. These portfolios are particularly well suited for value-conscious investors seeking to maximize their retirement or long-term savings, and who have over 10 years until retirement or anticipated capital withdrawals. This strategy invests in companies with strong internal growth characteristics. These firms are typically market leaders in their core business. While valuation is important, the emphasis is on growth at a reasonable price. Investments in this objective tend to have a smaller market capitalization and higher beta than those purchased for the Value & Dividend alternative.


Value & Dividend Portfolios

Designed for those who want a consistent and relatively high level of dividend income, as well as capital appreciation potential. This option is most suitable for conservative clients, who want more stable returns and a lower level of price volatility, or retired investors seeking current income from their portfolio. This strategy identifies quality companies that have a compelling relative valuation, but offer strong earnings predictability and high profitability. Stocks purchased for this portfolio typically have a higher-than-market dividend yield and/or exhibit strong historical dividend growth. Investments in this objective tend to have a larger market capitalization than those purchased for Capital Appreciation portfolios.

Investments in both Capital Appreciation and Value & Dividend Portfolios may include:

  • Predominantly large-cap and mid-cap stocks with potential for small-cap stocks
  • Exchange Traded Funds (ETFs) or mutual funds
  • International stocks (ADRs) or funds
  • Defensive positions in an Inverse Index Fund if conditions warrant
  • Cash and cash equivalents, including money market funds and U.S. Treasury Bills
  • Limited positions in bonds or bond funds under special circumstances

Advisory Services & Fees:

  • All managed accounts are custodied at a nationally recognized independent broker
  • US based clients only
  • Single account minimum opening balance is $750,000
  • Annual advisory fees range from 1.20% to 0.75% for assets under management up to $10M.  For assets under management greater than $10M please call.