Investment Discipline

 

As a subsidiary of Reynders, McVeigh Capital Management, Fresh Pond Capital has full access to an independent research staff and investment team with a long and wide-ranging history in socially responsible investments.  These significant resources allow Fresh Pond Capital to review, screen and uncover a wide range of compelling investment opportunities to meet the separate needs of its diverse client base. 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Management

 

Our equity management process is based on our belief that stocks of well-established companies that are producing powerful earnings and an above-average opportunity for dividend growth, when purchased at a reasonable price, will provide superior returns over long periods.

We are contrarian in our discipline, investing in companies when they are out of favor in the market.  We are long-term investors, not traders, and recognize the bite that taxes and transaction costs can take out of a client’s return.  We believe in the power of compounding returns.

Long-term investment success requires a strategy that provides growth during times of opportunity and capital preservation in times of hardship.  We invest in low-debt companies with progressive management teams that are serving areas of sure demand.  Transparency in the reporting of revenues and earnings is a critical factor in our discipline; we will only invest in companies where we can reasonably assess the risks we are taking on a client’s behalf.  If we cannot see how and where a company is earning its money clearly on an income statement, we will not invest.

Core stocks in our discipline can be large-cap, mid-cap or small-cap, foreign or domestic.  We price individual opportunities so that the risks that may attend different levels of capitalization are recognized and constrained.  Generally, the number of holdings in a portfolio will range from 30 to 40, affording ample diversification.  We tend to avoid heavily regulated industries, and we are rarely correlated to S&P 500 market weightings. 

Outside of our core dividend-growth investments in the portfolio, we seek out thematic investments where the growth opportunities are particularly compelling and/or the valuations that the general market is assigning are too pessimistic.  Thematic investments with which we remain confident include alternative energy, natural foods, world trade and preventive medical technology.  In addition, we seek out opportunities for unusually powerful upside growth in the public markets by encouraging modest investments in a package of four or five companies in emerging or high-growth industries.

 

Fixed-Income Management

 

The purpose of the fixed-income component of a balanced portfolio is twofold:  It must generate assured income; and it must provide stability in the investment mix.  We do not believe in taking on undue risk in fixed-income investments.  We do not put principal at risk by purchasing suspect credits or inordinately long maturities.  We invest in the highest quality credits when constructing bond ladders for clients, and we buy at or near par and hold to maturity, avoiding the potential for capital loss.

Bond portfolios are carefully tailored to individual circumstances.  Tax status, liquidity requirements and income needs are all critical factors in establishing the right fixed- income mix for each client.  We carefully monitor activity along the yield curve and will alter or add maturities when it is to the client’s advantage or as each client’s current bonds mature.

 

 

Fresh Pond Capital

4 Liberty Square

2nd Floor

Boston, MA 02109

Phone  617.226.3339

Fax  617. 226. 9998

www.freshpondcapital.com

Reynders, McVeigh Capital Management is dedicated to a core discipline that has provided both capital preservation and growth through varied market cycles, periods that have encompassed social and political upheavals, disruptive technological change and the challenges of an expanding global economy.  Thorough, independent research underlies all investment recommendations.