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Optimizing Your Portfolio with the STRIPs and BGEP

 /  Broadleaf Partners
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Financial advisor meeting with client regarding the STRIPs and BGEP investment strategies for portfolio diversification

Each investor has unique financial goals, risk tolerance levels, and investment objectives. For some, managing risk through portfolio diversification is a top priority. Others may prefer to invest in a way that prioritizes growth. Broadleaf Partners offers multiple investment solutions, the Strategic Investment Portfolios (STRIPs) and the Broadleaf Growth Equity Portfolio (BGEP), designed to cater to different investment objectives and risk tolerance levels. These portfolios can be used separately or combined to create a robust and adaptable investment strategy, suitable for a wide range of investors seeking to balance risk, growth, and returns.

Broadleaf Growth Equity Portfolio (BGEP) 

The BGEP is an award-winning, growth-oriented investment strategy that holds a concentrated portfolio of approximately 30 individual equity securities. This portfolio is designed for clients seeking exposure to growth-oriented investments as part of their overall managed portfolio. 

Investment Approach: 

  • Proprietary Strategy: The BGEP is managed using a proprietary investment strategy that combines top-down macroeconomic views with bottom-up, company-specific fundamental analysis. 
  • Performance Objective: The goal is to outperform the S&P 500 index over a three-to-five-year timeline or full market cycle. 
  • Investment Style: The BGEP employs an all-cap, concentrated equity investment style, which may be more volatile than the broader market. 

Portfolio Management: 

  • Active Monitoring: We closely track earnings trends and individual holding performance across various market environments. 
  • Disciplined Sell Strategy: Our rigorous sell discipline helps manage risk and optimize returns within the portfolio. 

Broadleaf Strategic Investment Portfolios (STRIPs) 

The Broadleaf Strategic Investment Portfolios (STRIPs) are a collection of three actively managed investment portfolios, the Growth STRIP, Balanced STRIP, and Conservative STRIP. These portfolios cater to investors with varying risk tolerance levels and investment goals. 

Key Features:  

  • Holdings: Unlike the BGEP, the STRIPs do not hold individual equity securities; instead, they invest in funds across a diversified range of equity and fixed income securities.  
  • Allocation: The STRIPs provide a diversified investment approach that includes investments spanning from large to small companies, funds focused on growth to funds focused on generating income from dividends, international markets, and a variety of fixed income securities, among other investments. 
  • Risk-Adjusted Strategy: The STRIPs employ a risk-adjusted approach, making them suitable for investors who want to entrust their entire portfolio to Broadleaf Partners' management. 
  • Customization: Each client's portfolio is managed separately, aligned with one of three objective-based investment models. 
  • Discretionary Management: Once your risk profile is determined, your account will be managed on a fully discretionary basis, adhering to the STRIP that best fits your profile.

How They Work Together 

While some investors may opt to invest in a single strategy, many find that combining the STRIPs with the BGEP creates a more optimal portfolio tailored to their unique goals, risk tolerance, and investment objectives.  

By combining these two investment strategies, you can create a more resilient portfolio that: 

  • Captures Upside Potential: The BGEP provides opportunities for higher growth and outperformance in positive markets. 
  • Mitigates Downside Risk: The STRIPs help cushion the impact of market downturns. 
  • Balances Risk and Return: The complementary strengths of STRIPs and BGEP work together to create a more balanced portfolio. 
  • Ongoing Portfolio Management: After determining the right allocation for you, we will continuously monitor performance of each strategy, and periodically rebalance your portfolio to ensure that you’re taking on the right amount of risk.  
  • Example: We decide to invest 60% of your assets in the Balanced STRIP and 40% in the BGEP. During periods of growth, this allocation may shift to 55% in the Balanced STRIP and 45% in the BGEP. We rebalance the portfolio as needed to maintain the ideal risk profile. 
  • Regular Reviews: We will check in with you periodically to determine if we’re still on the right path. As your life and financial circumstances change, we'll work together to make adjustments and keep your portfolio aligned with your needs. 

We’re confident that we can work with you to determine the optimal allocation to achieve your financial goals. Whether it's the BGEP, the STRIPs, or a customized combination of both, we're committed to guiding you toward a tailored investment strategy that helps you achieve your objectives and enjoy lasting peace of mind. Contact us today to schedule time to speak with one of our financial advisors and discuss your portfolio. 

 

Disclosures: 

Investment in securities involves risk of loss. Past performance is no guarantee of future returns. Information contained above, including any reference to the purchase or sale of a security or investment strategy, is not intended to constitute personalized investment advice. Personalized investment advice is always dependent on individual factors, involves risk, and is not a guarantee that any investment will produce favorable results.