Investment Process

Guardian Rock uses a disciplined investment process in managing each client portfolio to achieve specific financial goals. The firm seeks to maximize total-return or income production depending upon each client's unique needs and investment objectives.

Our investment philosophy centers on the customization of each investor's portfolio to meet their specific financial goals. We begin first with the individual and work collaboratively with each of our clients to arrive at what is important to them to establish a plan and goals for their financial future.  Next, we assess the client's risk tolerance, cash flow requirements, time horizon, tax considerations, and expectations for long-term portfolio growth. This information is then used to determine the appropriate mix of stocks, bonds, and cash equivalents held in each of our client's accounts. 

From there, we design and execute portfolios aimed at accomplishing those objectives. Our goal is to realize our clients' investment objectives while furthering their values and organizational missions.

We operate from a core belief that the market is a complex, adaptive system. While we believe in-depth, quantitative analysis is helpful and, in fact, necessary, over-reliance on quantitative measurements can expose portfolios and their owners to unintended risk. As such, we consistently employ both fundamental and quantitative analysis.  We use this analysis in combination with our team's decades of experience across varying market cycles in an attempt to generate specific investment outcomes. With constant change being a primary theme in the marketplace, innovation, adaptation, and deep thought are required disciplines at Guardian Rock Wealth. Using these values as and philosophy as our guide, we provide financial planning throughout the United States and even beyond its borders to people and organizations of all types and backgrounds.

While each of our clients has their own unique set of goals and objectives, we manage all of our clients' portfolios according to several universal investment strategies that we believe are crucial to financial success:

  • We generally invest for the long-term. We purchase both stocks and bonds that have the potential to provide an attractive level of return over long periods of time. This allows us to look past the market's short-term, sometimes volatile ups and downs and concentrate on achieving our clients' long-term objectives.
  • When setting industry sector weights we first look at the larger demographic and secular trends affecting the economy, and then actively target those sectors best positioned to take advantage of developing trends.
  • We use time-tested criteria to determine appropriate entry and exit points for each of our selected stocks. this mitigates the potential risk  of "chasing" a stock on the way up as well as the kind of "panic selling" that can so easily undermine portfolio performance. We have found that focused research and strict discipline are critical to executing an effective long-term investment strategy.
  • Once portfolio candidates are selected, we employ our proprietary social and process for those clients environmental screening for those clients so inclined. Based upon the client's specific criteria, securities are further screened and a portfolio is constructed.
Risk Management

Our clients realize that any participation in the stock market carries with it a certain amount of risk. While risk can not be eliminated from stock market investments, at Guardian Rock, we believe it can be mitigated to an extent by employing prudent and professional management.

We employ the following basic risk management strategies in the management of our equity portfolios in addition to utilizing specific strategies and tactics designed to buffer downward moves in the broader equity market:

We attempt to purchase securities at a reasonable price.  We start by determining if a stock is priced reasonably relative to industry peers as well as the overall market.  Fundamental analysis is the study of how a stock is priced in comparison to the company's business performance and financial strength. We look for companies that are among the leaders in their industries, with innovative management teams, and the ability to generate above-average earnings growth.

We seek companies with manageable debt levels, clean balance sheets and strong free cash flow that utilize transparent, accounting methods.

We look for stocks with reasonable Price/Earnings and Price/Sales ratios.

We provide an appropriate level of portfolio diversification so as to limit portfolio losses should any one issue or sector come under unusual pressure. We also attempt to avoid overdiversification that can hold down long term returns.  Our equity portfolios typically hold 25 to 35 individual issues.

We hold positions in a broad range of industry sectors.  Many managers concentrate their holdings in a few "favored" industries. While we may overweight a particular industry due to its positive  outlook, we will not ignore less "fashionable" industries. We believe industry-wide diversification is critical to effective risk management. Reasonably priced opportunities are present in most industries, most of the time, and we seek to take advantage of them regardless of their current popularity in the popular press.

We monitor portfolios and individual positions closely and rebalance regularly.  We use a disciplined approach in order to avoid over-weighting any one sector or individual security:

We generally trim overweighted positions in individual stocks if they appreciate to more than 6% of the overall equity portfolio value.

We generaly invest no more than 30% of equity holdings in any one industry or economic sector, and we maintain appropriate diversification within each. In general, economic sectors are further constrained to no more than plus or minus five percentage points relative to S&P 500 sector weight.

We maintain a strict sell discipline.  Knnowing when to seel a security is just as important as knowing when to purchase. Listed below are just a few of our disciplined sell criteria:

When a stock's price is not supported by our future earnings expectations, or we feel its growth rate in earnings is unsustainable, we will sell the stock.

When a stock grows to such a degree that its weight is above our target level in the portfolio, we will sell all or part of it.

If the fundamental reason upon which a company was purchased deteriorates or proves to be unfounded, we will sell the stock.

We may, from time to time, alter our long-term sector strategy in response to changing market conditions.  We use fixed income as a ballast to the portfolio to mitigate overall risk, however, we stress that the role of traditional fixed income has significantly changed over the years and no longer offers the same protection it once did.  As a result, we use other proprietary strategies to add downside protection as mentioned above in addition to traditional fixed income securities.