Why a Managed Portfolio?
A professionally managed portfolio combines the benefits of owning individual securities with the peace of mind of knowing an investment professional is continually monitoring the portfolio. With professional portfolio management, the client holds ultimate control over security selection, experiences enhanced tax efficiency and enjoys the optimal level of communication with his or her portfolio manager.
At Oarsman Capital, the client’s portfolio is expertly managed by a team of portfolio managers. The team-based approach ensures an investment professional is always accessible to discuss investment issues or answer questions. Building upon in-depth consultation with the client, an Investment Policy Statement (IPS) is developed for each Oarsman portfolio, providing written guidelines for management of the assets. The IPS details both near- and long-term objectives, substantiates asset allocation parameters and addresses the client’s tax situation and any other special circumstances.
For taxable investors, after-tax results are what matter. Tax-efficient management ensures that all securities are purchased with a long-term perspective. Annual portfolio turnover averages less than 25%, and extra care is taken to maximize after-tax performance by matching realized gains with losses when available. Even greater tax efficiency may be realized when portfolio gains and losses are viewed in conjunction with transactions the client may have undertaken outside his or her Oarsman portfolio.
Advantages of an Oarsman Portfolio Structure
By owning a core portfolio of individual securities, rather than mutual funds alone, the investor holds ultimate control over the securities in his or her Oarsman Capital portfolio. Some investors, for example, prefer not to own the stocks of companies that manufacture certain pharmaceuticals or market alcohol. Oarsman Capital can exclude those stocks from the portfolio according to the client’s guidance. Control over individual security selection is also essential in managing portfolios that hold large positions in low-cost-basis securities. For new clients with existing investment holdings, Oarsman works with each client to determine an appropriate approach to repositioning the portfolio, avoiding abrupt and often costly sales of existing holdings.