Investment Management

Capitol Wealth Management brings a rigorous analytical approach to investment management. We employ sophisticated qualitative and quantitative research techniques to help select the most suitable investments and managers for our clients, and we observe disciplined risk management and sell criteria in the construction and management of client portfolios.

Asset Allocation
Once a client’s financial plan and risk tolerance are established, we determine an appropriate asset allocation for each client:  an individually tailored mix of equity portfolios diversified by investment style (growth, value and blend) and capitalization size (large cap, mid cap and small cap), balanced with investments in  international equities, real estate, and fixed income securities. We then begin carefully positioning the client’s existing portfolio, helping to select appropriate investments without creating disruptive tax consequences.

Active and Passive Investing
Diversification among and within asset classes, a fundamental principle of prudent investing, is only one method we use to reduce overall portfolio volatility. We also employ a mix of active and passive investment 

strategies.  Passive investments include broadly diversified portfolios of securities which track the performance of various market indices; active investments may include individual stocks or more concentrated portfolios that have consistently outperformed the market. We use a blend of both strategies in an effort to earn positive returns in even the most challenging markets.


Manager and Stock Selection

Capitol Wealth Management uses proprietary databases, independent third-party research, and our own personal due diligence to evaluate individual managers based on such criteria as performance, turnover, fees, and risk profile. Our stock selection process includes both traditional fundamental analysis and quantitative metrics. We focus our efforts on identifying high quality companies whose financial strength and strategic visions provide maximum potential for long term growth – ideally, companies we can purchase below projected value.

Risk Management 
We believe controlling risk is just as important as growing capital. Our fundamental investment strategy – buying high quality stocks at reasonable prices or below intrinsic value – provides clients with an underlying margin of confidence. Investing in companies with significant tangible assets and strong dividend policies may further lessen the overall risk. We also help manage risk by diversifying client investments by strategy, asset class, sectors and industries, limiting initial positions to no more than 10% of portfolio holdings, and employing programs of phased-in buying and selling. We monitor portfolios regularly.

*There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Sector investing may involve a greater degree of risk than investments with broader diversification.

Investments in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of market volatility than the overall market average. 

No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values.