“Simply put, sell discipline knows when to take profits or cut losses.”

Sell discipline was completely ignored in the bull market of the late 1990’s and is only now being talked about again. We’re not new to the party; an active sell strategy has been part of our investment philosophy since the beginning. The very first application of sell discipline is when we first add a position to the portfolio because we must discuss with the client when they feel and we feel the investment has reached the goal we want to achieve. Many times we will implement a stop loss order and/or a sell order at a particular level goal when we add the position. Our portfolios are all updated nightly and are reviewed each morning for changes.

“We monitor the shifts and changes in our client portfolios on a daily basis.”

This is a source of great pride for us. Daily monitoring is accomplished with the assistance of technology and our ability to flag accounts and place benchmarks on both the accounts and our portfolio designs. Alert systems allow us to closely monitor the account and make educated decisions as to how to respond. We provide extensive research on holdings in the client accounts, doing stock overlap comparisons, with the holdings under our management as well as those in other investments the client may own. This overlap comparison allows us to ensure each client has a balance in the design of their investments which is not overly weighted in any sector or individual holding.

Single-Style Managers are those who use one particular asset type at all times, most commonly in equity.
There are a number of very well known and highly regarded managers in the U.S. who only use value stocks in their portfolios. Some use only growth stocks, while others may use only small cap stocks.

These managers tend to do very well for their clients when their particular investment style is in favor. However, specific investment styles gradually go in and out of favor over time. While a single-style manager may do very well for its clients when its style is in favor, it tends to do very poorly when its style is out of favor.

Gateway Financial Advisors are Style-Rotation Managers. This is the least common investment management style.

Managers using this investment style have to be very accurate in their analysis of the market to correctly move clients into the correct asset classes. When used properly, this strategy can lead to the highest returns.

Investors should understand that active trading in a portfolio may result in a taxable event or subject an investor to additional fees and charges, depending upon the type of account and investment.