Winthrop Capital Management’s disciplined portfolio structuring process demands that each security align with one of four strategic objective categories. 

Core Holdings are securities which most comprehensively embody the type of investment which we believe will meet our performance and risk criteria.  Established companies with credible, proven management teams, which consistently deliver economic value to their shareholders form the foundation of the Value Income portfolio.  Commonly, our positions in the securities of these companies will be larger with lower turnover than investments with other objectives. 

WCM looks for the best Relative Value Opportunities both among companies in their respective industries and across an individual company’s entire capital structure.  We measure relative value opportunities by assessing where the greatest discrepancy lies between a security’s current market price and our conviction about its intrinsic value.  In certain circumstances, the best investment opportunities might include preferred stock, convertible securities, and debentures.

Securities of companies which are undergoing restructuring or implementing new strategic initiatives are identified as Developing Situations.  Catalysts, while important for each security in the portfolio, are particularly critical in developing situations as they underpin the very thesis of our investment.  Generally, positions in securities in this category will be reduced or sold when the identified catalysts meet targeted return objectives or when those catalysts fail. 

From time to time, capital market inefficiencies lead to security prices which diverge dramatically from intrinsic value.  The Opportunistic objective provides for a measured investment which seeks to capitalize on these occurrences.  Opportunistic investments might take place in securities not previously owned in the portfolio or they may constitute subsequent positions in existing holdings.