FCIA emphasizes four basic investment strategies, each of which individually or in varying combinations along the spectrum from conservative to aggressive can fulfill the return objectives and risk tolerances of our clients.  These basic strategies are:

  1. Income
  2. Income, Growth and Value
  3. Long-term Growth and Value
  4. Long/Short Growth

Income Strategy

The Income strategy seeks primarily to generate steady income with minimal risk of capital.  Within the basic conservative income strategy, sub-strategies are individually tailored for each client account depending upon specific yield, liquidity, tax and estate planning requirements.

Income, Growth and Value Strategy

The Income, Growth and Value strategy seeks primarily to generate steady income from a diversified portfolio of equity and income securities that will provide a certain level of income and have potential for capital growth over time.  This strategy focuses primarily upon equity securities in companies having characteristics such as strong long-term financial performance, a solid record of dividend payments, and underlying asset or enterprise value that can withstand economic and market volatility over time.

Long-term Growth and Value Strategy

The Long-term Growth and Value strategy seeks primarily to generate capital growth over time by investing in a diversified portfolio of equity securities that are expected to appreciate resulting from successful investment themes, above-average company growth, undervalued assets, and/or cyclical economic and stock market trends.

Long/Short Growth Strategy

The Long/Short Growth strategy seeks to maximize capital gains through investing in and short-selling equity securities, more aggressive trading, higher concentration of portfolio positions, and use of leverage.  This strategy is appropriate only for investors having understanding of the potential risks of short selling, leverage, and portfolio concentration, and as such, could have higher-than-normal capital volatility.

Individualized Strategies

FCIA also develops individualized strategies for clients having specific or unique needs that are not adequately covered by any of the basic strategies.  These might include an unusual asset- or tax-planning situation, a desire to enhance current income beyond that typically generated within the basic strategies, or a desire to emphasize a certain investment class or sector in the investment plan.

Investment Vehicles

FCIA invests predominantly in equity and fixed income securities and exchange-traded funds (ETFs) for client accounts.  Equity securities include equity-related securities traded publicly in U.S. markets, preferred stocks, and convertible securities. For certain accounts, equity securities investments may also include options and other derivative securities, foreign securities, and short selling.  Fixed income securities include U.S. Government, state and local government debt obligations, corporate debt obligations, exchange traded funds (ETFs), fixed income oriented mutual funds, and money market funds.

Risk Management Strategies

Each of these strategies uses risk management techniques to reduce volatility and capital loss risk, the magnitude of which are tailored individually depending upon client-specific risk tolerances.  When appropriate to the needs of the client, these risk management strategies may include hedging using options or leveraged ETFs, short selling, and use of margin.  These strategies are only recommended when consistent with the client’s stated tolerance for risk.