Lodestar’s research and security selection process is focused on generating positive long-term results. Our equity investment style employs a disciplined approach that focuses on value and high quality. We seek undervalued stocks that can be held for long periods of time. High grade bonds with short to intermediate term maturities are utilized for the fixed income allocation in balanced portfolios.


Identifying Stocks for the Long-Term
Lodestar’s equity investment style employs a conservative and disciplined approach to stock selection, focusing on owning high quality, undervalued stocks that can be held for long periods of time.  Utilizing a team approach, our portfolio managers screen databases for companies that meet certain value and quality criteria. These measures include, though are not limited to, relative and absolute price/earnings and price/cash flow ratios, dividend yield levels, and financial strength. Companies that meet our criteria are then rigorously analyzed from a fundamental perspective.

When to Sell
A stock may be sold when we observe deterioration in business fundamentals, a technical price breakdown without qualitative justification, or overvaluation relative to historical parameters. Additionally, tax considerations, where appropriate, are evaluated with respect to any sale transaction. 

Finding the Right Bonds
The fixed income portion of a client portfolio is conservatively managed for capital preservation and current income. Fixed income securities include U.S. Treasury and government agency securities, high grade corporate bonds, and tax exempt municipal securities. Our emphasis on identifying and including high quality bonds with short to intermediate-term maturities (less than 10 years) is an important factor in achieving our client’s fixed income objectives.

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