How we work.  We manage our clients’ investments under a discretionary investment management agreement.  Your assets are held in your own separate account at a third-party custodian.  Charles Schwab is our recommended custodian, but we also work with other custodian firms.  Our minimum is generally $300,000 in assets which may be aggregated across accounts within a household.

Defining your objectives.  Our work with you begins with an assessment of your financial circumstances, investment timeframes, and attitudes towards investment risk.  This process results in a mutually agreed specification of your investment objectives and an investment policy statement.

Customized portfolios.   Based on your specific objectives, investment timeframes, and risk preferences, we will build you a customized portfolio within one of the following account types:

• Capital Appreciation
• Balanced
• Equity Income
• Fixed Income

Investment vehicles.  To maximize both performance and tax-efficiency, most assets are invested in individual stocks or bonds as opposed to mutual funds.  Mutual funds are used only for investing in asset classes for which it is difficult or costly to invest directly (such as smaller cap foreign stocks), and for cash management (money market funds).

Legacy positions.  When taking on a new client, some investment managers routinely sell clients’ legacy holdings.  However, Palo Capital recognizes this may not be in your best interest for tax or other reasons.  We review all significant positions and make a hold/sell recommendation appropriate to the specific circumstances.  If a concentrated position is to be held, we will take this into consideration in designing the remainder of your portfolio.

Account monitoring & performance reporting.  Our monitoring of your accounts includes a continual evaluation of all investment positions based on current company, industry, and market developments.  We provide you regular reports showing your account’s performance compared to relevant market benchmarks.

Working with your other advisors.  Because Palo Capital’s efforts are tightly focused on the investment management process, we are happy to work with your tax, legal, or other advisors.