Our Approach

The portfolio management team will take into account both qualitative and quantitative factors when determining Leon Frazer companies.

  • What is the 5-year growth record in terms of cash flow, earnings and dividends?
  • Is the company headed by an experienced, approachable and clear-thinking management team?
  • What does a fundamental, discounted cash flow valuation analysis indicate? Fair value is fair game.
  • What is the current yield?
  • How liquid is the stock?

This disciplined, conservative approach results in a generally low turnover of less than 15% annually in the portfolio.

A number of factors may lead the portfolio management team to sell or reduce a position. Such factors include changes in the economic environment, changes in the company’s strategic direction‎, or failure to achieve operating goals or metrics.

“As a risk management discipline, we endeavor to maintain discrete weights in the stocks in the portfolio,” says Gil Lamothe. “As a position becomes over or under valued, we trim or add as appropriate, in order to maintain our desired exposure.”