The Leon Frazer process starts with Leon Frazer’s high-level economic view, which is based on both domestic and global conditions. Individual stocks are then analyzed using a proprietary discounted cash flow model. We look at base case, best case and worst case scenarios using 10-year projections in order to evaluate both the risk in owning a stock, as well as its fair value.
The portfolio management team meets regularly to review the securities in the portfolio as well as discuss any re-weightings or new stock ideas.
The Leon Frazer portfolio invests in companies that make up the “backbone” of the economy. Depending on economic conditions, at least 40-60% of the portfolio is generally invested in pipelines, utilities, telecoms and financial services.
“These companies produce strong and stable cash flows resulting in reliable and growing dividends,” says Gil Lamothe, Senior Portfolio Manager. “Consumers use these products everyday through good times and bad, whether texting on their smart phone or heating their home.”
The companies that Leon Frazer selects not only form the backbone of the economy, but are industry leaders. They are led by experienced, principled and disciplined management teams, and provide quality goods and services that have a long life cycle.