After careful consideration of the client’s investment objectives, investment timeframes, and risk preferences, Palo Capital constructs a customized portfolio within one of the following account types:

• Capital Appreciation Accounts seek to achieve maximal, long-term capital appreciation by investing in publicly listed securities without constraints based on market capitalization, style, asset class, country, or industry sectors.  Investments typically consist of 100% individual equities, include both domestic and non-U.S. companies, and, in comparison to broad market indices, include greater exposure to small capitalization stocks.  While minimizing short-term volatility is not an explicit objective, during periods of perceived elevated market risk, Palo Capital may raise cash, use option strategies, or engage in short selling in accounts where these strategies are permitted.   

• Core Equity Accounts seek to achieve results that exceed the returns of the Standard & Poor’s 500 Index over a full market cycle.  In contrast to the S&P 500 Index, the Core Equity Strategy will usually include exposure to non-U.S. and smaller capitalization equities.  In comparison with Palo Capital’s Capital Appreciation Strategy, the Core Equity Strategy is expected to exhibit somewhat lower volatility due to a larger average market capitalization and a greater emphasis on companies having more predictable business models, stronger balance sheet characteristics, and/or dividend payment.