Investment Management

Alpine Capital Management uses proven technical indicators and proprietary strategies to actively manage each investor’s portfolio.

1.
FED WATCH

We vigilantly follow the actions of the Federal Reserve, because, with very few exceptions, the stock market trends in concert with their monetary policies. With that knowledge, we adjust our investment strategy according to the Federal Reserve’s policy of expansion or contraction.

2.
TREND ANALYSIS

Alpine Capital uses a number of fundamental, technical and cyclical tools to quantify market trends. This on-going trend analysis measures the direction, strength, and quality of important market trends. When the trend is rising, our client portfolios are invested in securities with good profit potential. If a technical breakdown is detected and the trend moves to the downside, we apply a defensive strategy, which might entail a large cash position, hedging, or even shorting the market.

3.
SELECTING SECURITIES

Whether we are selecting stocks or mutual funds, there are specific screening criteria that we apply, beginning with company fundamentals. Since the value of a company’s stock is a reflection of its future earnings potential, we carefully analyze and select companies with a steady history of solid earnings, a strong balance sheet but attractively priced as a value or a bargain.

4.
DIVERSIFICATION

There are two sides to diversification. The first is that it reduces risk —that’s a given. The second is less commonly discussed; it dilutes performance. Alpine Capital addresses both sides by holding a carefully selected number of stocks or mutual funds in each client portfolio.

5.
MANAGING RISK

As an active money-manager, Alpine Capital seeks to enhance returns and minimize risk. We look to capture most of the market’s advances yet sidestep major downturns. We believe that missing severe market drops is essential to investment success, because the less investor’s lose during downturns, the less they have to make up. Although risk cannot be eliminated, with our proprietary money management model, it can be managed to avoid catastrophic losses. The mathematics of our models have been tailored to select low-risk, high probability opportunities when the market is trending favorably. When the market environment shifts to reflect high-risk and low probability opportunities our models shifts to a defensive strategy.

6.
WHEN TO SELL

Knowing what to buy is only half of the investment equation. Knowing when to sell can, arguably, be the tougher half. One of the most common errors investors make is letting a nice profit turn into a loss. Another mistake, in our opinion, is averaging down. There’s an old saying on Wall Street: “Never try to catch a falling knife.” Alpine Capital rarely averages down. If a stock or mutual fund is overvalued and not performing to our expectations, we generally cut it loose and look for other opportunities.