Investment Management

We have a specific way of looking at the world of investing. We are acutely aware that it can take a lifetime to accumulate wealth, but only a short time to destroy it.

Our clients have a focused objective to grow and protect their wealth. Controlling risk forms the basis of our investment thesis. Our tactical approach using relative strength analysis, in conjunction with fundamental research, is the cornerstone of our investment philosophy. Relative strength is a time-tested investment factor that permeates our work, allowing us to identify where both strength and weakness exists across securities, sectors, and asset classes.

Spectrum strived to develop a different approach to investment management to cope with the reality of economic boom and bust cycles. The timing of these cycles and the impact on portfolios of clients nearing or in retirement was our guidepost to develop a method to manage investments to provide both growth and risk control. We believe the environment after the 2008 Crisis has changed many investment dynamics. The link between economic and earnings fundamentals and the markets has become overextended. Central banks around the world have manipulated asset prices through monetary policy. High-frequency trading has brought periods of heightened volatility like we experienced during the COVID-led market panic of early 2020. Financial engineering by corporations has clouded earnings performance. The economic challenges that we face today require a thoughtful and adaptive approach that goes beyond a strategy based on forecasts and theory.

Our philosophy is to offer clients a flexible approach to designing and implementing an investment strategy that meets their needs over time. Spectrum uses core strategic portfolio allocations in tandem with proprietary tactical portfolio strategies to meet a client's unique objectives.

SMG All Cap

The SMG All Cap Portfolio is a diversified portfolio of publicly traded companies that have competitive advantages and the potential for sustained superior growth. We use a technical overlay to our bottom-up fundamental research to guide the timing of buy and sell decisions.

Portfolio Goals

- U.S. strategy with a strong emphasis on sustainable earnings growth

- Focus on companies with high returns on capital

- Concentrated portfolio of 20 to 30 stocks

SMG Dividend Growth

The SMG Dividend Growth Portfolio is a diversified portfolio of high-quality publicly traded companies that provide a higher dividend yield than the equity market as a whole and whose management has the willingness and ability to grow their dividend. We use a technical overlay to our bottom-up fundamental research to guide the timing of buy and sell decisions.

Portfolio Goals

- Achieve a blend of high current income and growth in cash flow over time

- Dampen volatility in uncertain market environments

- Provide attractive growing cash flow to satisfy many investment objectives

SMG Growth and Income

The SMG Growth and Income Strategy is designed to provide a diversified exposure to fundamentally attractive U.S. stocks that are a combination of dividend-paying stocks with an emphasis on companies with strong dividend growth and a high return on investment and non-dividend paying stocks that focus on quality metrics.

Portfolio Goals

- Achieve a blend of high current income and growth in cash flow over time

- Focus on companies with a strong emphasis on sustainable earnings growth and high returns on capital

SMG Sector Rotation

The SMG Sector Rotation Strategy is designed to gain exposure to the strongest relative strength sectors in the U.S. economy using ten sector exchange-traded funds and a cash component as its universe encompassing the following broad sectors: technology, healthcare, consumer discretionary, consumer staples, utilities, financials, material, communication services, industrials, and energy. The rules-based strategy is evaluated on a monthly basis and owns sectors, including cash, that demonstrate high relative strength.  The Strategy may rotate between equity and stock exposure.

Portfolio Goals

- Outperform the S&P 500 over an extended period by maintaining exposure to strong relative strength sectors and becoming defensive during periods of heightened market volatility

SMG Macro Advance and Protect

The SMG Macro Advance and Protect Strategy is designed to allocate up to five equity exchange traded funds and four fixed-income funds for a total allocation across ten different asset classes. The top-level macroeconomic model determines the appropriate equity and fixed-income allocation, relying on an analysis of leading economic indicators, relative strength and market breadth indicators, and the second-level indicators and ranking system to determine the allocation within the equity and fixed income baskets.

Portfolio Goals

Tactically adjust the portfolio between "risk-on" and "risk-off" asset classes in an attempt to reflect prevailing financial conditions

- Seeks to stay on the right side of major trends by using trend-following indicators

SMG Core Portfolios

The SMG Core Portfolios provide both strategic and tactical diversified allocations across asset classes and risk tolerances.  The strategic portfolios are developed in conjunction with the tools, research, and resources of a leading asset management organization. The tactical portfolios incorporate the relative strength analysis that permeates our investment thesis.   

Portfolio Goals

- Provide diversified portfolios strategies across various risk profiles from conservative to aggressive

- Provides a ballast to tactical allocation strategies

SMG Custom

We are able to provide customized solutions for individual equity portfolios for clients that have unique needs such as low-basis holdings and individual stock or sector restraints.

Fixed Income Strategies

We work with third-party fixed income managers to design tailored portfolios to accomplish the individual needs of each client. Fixed income strategies encompass both active and ladder approaches to taxable and municipal portfolios. Spectrum works with a dedicated portfolio management team of over 50 individuals dedicated to the highest quality credit research and trading functions.

Portfolio Goals

- Low cost customized individual fixed income portfolios that are reactive to the market environment and not an index fund

Client Centered

Investment Advisory Services

Investment Policy Design

Our clients come to us with a wide range of needs and objectives. Spectrum works with you to form specific investment goals and portfolios to reach each goal. We create a bespoke investment solution for each client.

Tactical Asset Allocation

Controlling risk forms the basis of our investment thesis. Our tactical approach affects how we deploy capital across asset classes with a bias towards investment themes that we perceive to have a high probability of reward and avoid areas that we perceive have heightened risk.

Investment Selection and Implementation

Investment themes and underlying investments selected to be a part of a portfolio are carefully reviewed by our analysts with industry-leading research and tools. Once identified, we move to implement the investment decision tax efficiently and cost effectively.

Tax Efficient Management

With experts in tax-efficient investment planning, we understand the importance of protecting your portfolio with tax-efficient decisions during every stage of the investment process. We continually look for opportunities to minimize tax by using tax-efficient investment structures, tax-loss harvesting opportunities, and asset location preferences. Spectrum works to ensure a unique investment plan and a tax-efficient strategy that is appropriate for your needs.

Performance Reporting

Reporting is customized specifically for your needs and objectives. The reporting of performance is centered on transparency and accuracy. We provide benchmarks and analysis so that you can easily track your progress.

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