Iron Horse - Approach http://www.goironhorse.com/Approach en-us Mon, 21 May 2012 00:59:16 -0500 Overview http://www.goironhorse.com/Approach/Overview Collaboration at IronHorse
In the early days of railroad success was predicated on getting the cargo and passenger to their destination. It was determined that achieving this objective took a team. Each member knew of the destination and the role he played in reaching it. The engineer would set the course and create momentum. The conductor would see to passenger comfort and safety. The brake man would work from the caboose to monitor rail to railcar performance. In our space it’s important to have someone who can cast vision toward the destination, a sincere representative to interface with our clients, and a smart hands-on performance minded guy to see it through.

Top Down/Bottom Up
It is possible to find the right balance of return opportunity and risk management. We do so by balancing a global top-down macro analytical process, with traditional value-oriented, fundamental equity research and stock-picking.

IronHorse Macro Investment Strategist David Waddell says, "Money cannot be properly managed in today's dynamic and interconnected world without bringing the entire spectrum of analysis to bear. Macro, micro, fundamental, technical, geo-political, etc. You name it, we're thinking about it. At IronHorse, our views are comprehensive"

Identify, Choose, and Control
A global perspective informs our selection process.  A top down view and bottom up approach determines our choices. And, a value of growth philosophy is the control mechanism that moves us toward the desired objective.

]]> Thu, 10 Dec 2009 00:00:00 -0500 http://www.goironhorse.com/Approach/Overview Strategy http://www.goironhorse.com/Approach/Strategy Balance
We balance capital appreciation and capital preservation. As our Macro Investment Strategist identifies investment vehicles with potential upside for favorable returns our Chief Investment Strategist drills into the actual performance of current vehicles and their projected trends.

Strategy
Finding companies trading below intrinsic value is certainly a very important part of constructing a global portfolio capable of properly balancing risk and reward, but it's not the only ingredient. Thoughtful consideration of factors such as liquidity, diversification across sectors, regions, and currencies, and the potential impact of obscure market risk factors on all portfolio companies significantly increases the odds of successfully navigating turbulent market periods.

According to Chad Cunningham, Chief Investment Officer, IronHorse conscientiously considers all of these factors when constructing the overall portfolio:

"The liquidity of the underlying portfolio is very important to us. Each name must adhere to strict market cap and volume rules. Median market cap is approximately $4 billion with median daily trading volume of nearly 1.5 million shares. Scenario and stress test analysis helps the investment team consider how various situations could impact our names at any moment. Finally, IronHorse strives to ensure that the portfolio isn't dangerously concentrated in one particular theme, region, or sector. All tactical allocations are made with strong risk management principles in mind."

Growth to Value
IronHorse strives to provide superior long-term risk-adjusted returns. To achieve our goals, IronHorse invests in global mid to large cap equities, primarily focusing on investments in developed regions and markets. The investment selection process is value-oriented.

To learn see "our mix".

]]> Tue, 10 Nov 2009 00:00:00 -0500 http://www.goironhorse.com/Approach/Strategy Opportunity http://www.goironhorse.com/Approach/Opportunity Globally Minded
The current Marketplace for a globally minded approach Investors more and more need a thorough understanding of how macroeconomic and geopolitical factors impact their investments. Unfortunately most of the available investment product has been created with a US domestic bent and born in the extended bull markets of the last thirty years. This combination has left a gaping hole in most investors portfolios: where they are overly exposed to the US domestic markets and inadequately equipped to preserve capital in down markets.

To drive the point home, in a recent analysis of all mutual funds researched by Lipper, 14,339 of them address US opportunities only. 1,095 of them address Global opportunities. In an investable world that is more and more susceptible to country risk does it make sense that you are 14 times more likely to invest your money in just one country than spread your risk over many?

]]> Sat, 10 Oct 2009 00:00:00 -0500 http://www.goironhorse.com/Approach/Opportunity Fairness http://www.goironhorse.com/Approach/Fairness Weighing Protection and Returns
The conversation has changed. The market events of the past 12 to 18 months have moved risk management to the front of the investor discovery process. The prospective viability of a fund and its managers is being measured on the ability to employ robust downside protection when market risks increase meaningfully while still harboring the ability to generate solid returns.

Transparency Begets Investor Comfort
Investors find additional comfort in knowing where their money is. We don’t like the opaque hedge fund model. We favor operating our business in a transparent manner. It promotes fairness, enables accountability, and perpetuates a long view over the investment timeline.

IronHorse President, Kerr Tigrett thinks,

“Our clients have the ability to see exactly what they are invested in and know the value of it up to the minute because of our relationship with Schwab.”

Business
We’re not working on an assembly line. However, we are process driven. We’re building a business wherein the work we do is easily explained – revolving around a product careful to balance return opportunity and risk management toward the client’s objective – and repeatable.

]]> Fri, 11 Sep 2009 00:00:00 -0500 http://www.goironhorse.com/Approach/Fairness Our Mix http://www.goironhorse.com/Approach/OurMix IronHorse believes that strategic cross-border and multi-sector diversification dramatically enhances the opportunities for investor success. 

Philosophy  
Global diversification gives IronHorse the ability to scan the world for investments that fit our value-oriented philosophy, thus improving our potential to produce outsized returns in all market environments.  Meanwhile, global diversification helps diminish overall portfolio risk over time.  In the end, IronHorse remains steadfastly focused on superior risk-adjusted return.  Strategic, multi-level diversification gives IronHorse investors an advantage.

HOW WE ACHIEVE DIVERSIFICATION:
Cross-BordeR
IronHorse invests in mid and large cap companies across all regions of the world, from North America, to the developed EAFE (Europe, Australia, Far East) countries, to emerging markets.  All individual investments in international markets must meet strict valuation, liquidity, and market-cap criteria to ensure that IronHorse is providing returns without excessive risk.  IronHorse imposes limits on the level of investment in any one country or region.  

Cross-Sector
IronHorse complements its bottoms-up, fundamental single-stock orientation by analyzing and shaping the portfolio at the sector level.  Various criteria such as valuation, growth potential, and overall market environment guide the allocation process.  Similar to the process for geographic diversification, IronHorse uses strict internal guidelines that limit too much concentration in any one sector.

Multi-CurrencY
IronHorse purchases all investments in local currency providing IronHorse investors true currency diversification. 



 

 

 

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