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Our Strategies and Primary Purpose

Quantico Asset Management of Wells Fargo Advisors provides custom asset management solutions for our clients. To accomplish this we implement a goals-based investment strategy with proper asset allocation according to your personal investment characteristics. Once we have established goals in place for each client/family, we allocate their assets in order to better position them in an attempt to meet those goals. In additon to our in-house equity expertise, we utilize outside managers for asset classes outside of our core competencies to ensure adequate attention and expertise is applied to each investment allocation.

Core Competencies

We believe our investment philosophy and strategies align with Warren Buffett when he says "It is far better to buy a wonderful business at a fair price, than a fair business at a wonderful price." For the US Large, Mid Cap Equity, and Dividend Option accounts, we build custom in-house portfolios. To create these fully discretionary equity portfolios, based on our internal investment philosophy and process, we utilize the Private Investment Management (PIM) program at Wells Fargo Advisors. The Dividend Option Model requires an option overlay to the discretionary portfolio. These actively managed PIM portfolios have the following general characterstics.

Large Cap Strategy

  • A collection of Globally Branded Companies
  • Market Capitalization typically $8B+ (at least 75% of portfolio, subject to short-term fluctuations)
  • Strong Balance Sheets and Competent, Honest Management
  • Strong Returns on Capital and Gross Margins
  • Valuation that incorporates a "Margin of Safety"

Mid Cap Strategy

  • A collection of Companies with Burgeoning Brand Power
  • Market Capitalization typically $1-8B (at least 75% of portfolio, subject to short-term fluctuations)
  • Strong Balance Sheets with Visionary, Honest Management
  • Strong Returns on Capital and Gross Margins
  • Valuations that Incorporate a "Margin of Safety"

Q-Squared Large Strategy

  • Market Capitalization typically $8B+ (at least 75% of portfolio, subject to short-term fluctuations)
  • Avoid businesses with unusually high risk of financial distress or accounting irregularities
  • Evaluate companies on solid measures of operating strength and quality
  • Utilizes a proprietary fundamental factor ranking to select names based on Warren Buffett's quality and value metrics
  • Employs a checklist process to produce an efficient and scalable portfolio that avoids human misjudgement through rules-based buy and sell decisions
  • Sector Neutral with respect to the S&P 500

Q-Squared Mid Strategy

  • Market Capitalization typically $1-8B
  • Avoid businesses with unusually high risk of financial distress or accounting irregularities
  • Evaluate companies on solid measures of operating strength and quality
  • Utilizes a proprietary fundamental factor ranking to select names based on Warren Buffett's quality and value metrics
  • Employs a checklist process to produce an efficient and scalable porftolio that avoids human misjudgement through rules-based buy and sell decisions
  • Sector Neutral with respect to the Russell Mid Cap Index

QARP Strategy

  • QARP (Quality at a Reasonable Price) uses the same Quantico company evaluation process  with a 'Buffett-esque' long-term buy-and-hold approach
  • Low turnover and tax sensitivity
  • Builds upon the Q-Squared proprietary fundamental factor ranking system, adding growth factors to evaluate current and prospective holdings for durable growth
  • Sector agnostic, but strives to maintain portfolio exposure across a broad range of market segments
  • Concentrated portfolio comprised of 10-15 top ideas

Dividend Option Strategy

  • Overlays Covered Calls and Collars to our top equity ideas and asset class ETFs
  • Allows for portfolio income generation that retains upside appreciation potential
  • Covered Calls as equities and ETFs approach our view of fair value, rolling contracts to provide tax efficiency
  • Collars enable us to provide a level of portfolio protection in elevated markets

PIM Disclosure

 

The PIM Program is not designed for excessively traded or inactive accounts and is not appropriate for all investors. Please carefully review the advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.

The prices of mid-cap company stocks are generally more volatile than large company stocks. They often involve higher risks because mid-cap companies may lack the management expertise, financial resources, product diversification and competitive strengths to endure adverse economic conditions.

Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market.