Investment Management

A disciplined investment process is key to delivering repeatable performance. For over 30 years, our thematic investment process has allowed our investment professionals to find companies with long-term fundamental drivers that will create value over many years. We conduct face-to-face meetings with company management teams as we believe it is critical to understand the firm’s vision and their quality of management before buying their stock. We also conduct thorough fundamental and technical analysis on every security that potentially may be a holding in our clients’ portfolios.

Apply a multi-tiered investment process that seeks to uncover investable themes and companies within the industries best positioned to profit from them.
Conduct a bottom up analysis of company fundamentals which includes meetings with senior managements.

MACROECONOMIC RESEARCH

Develop Investable Themes
Fundamental Macro Factors:

Economic
Domestic
Political
Monetary
Geopolitical
Psychological

FUNDAMENTAL AND THEMATIC RESEARCH

Best Managements
Defensible Business Models
Multi year Revenue Growth
Margin Expansion Opportunity
Solid Balance Sheets
- Identify Thematic Trends

Quantitative and
Technical Analysis

Growth Prospects
Valuation
Price Behavior
Risk Mitigation
Liquidity

MACROECONOMIC RESEARCH

Develop Investable Themes
Fundamental Macro Factors:

Economic
Domestic
Political
Monetary
Geopolitical
Psychological

FUNDAMENTAL AND THEMATIC RESEARCH

Best Managements
Defensible Business Models
Multi year Revenue Growth
Margin Expansion Opportunity
Solid Balance Sheets
- Identify Thematic Trends

Quantitative and
Technical Analysis

Growth Prospects
Valuation
Price Behavior
Risk Mitigation
Liquidity

Macroeconomic Analysis

One of the largest drivers of market performance is the overall health of the economy. In an expansionary phase, investors should focus on the more cyclical sectors. In a slow growth or contraction phase, the focus should be on more defensive sectors. Additionally, monetary policy has become an increasingly more important factor. While we do not seek to time the market, our macroeconomic process guides us towards the areas of the market we believe are likely to outperform.

Thematic

Identifying long-term investment themes allows us to focus our research effort on areas of the economy that are likely to see multi-year, if not decades, of above average growth. One must be careful though in seeking investment opportunities in this area. Am I just following a crowd into an overhyped (and overvalued) group of stocks? Or is it for real this time? Our investment experience, as well as quantitative tools, helps us identify those themes that are worth investing in for the long term.

Fundamental Analysis

Meeting with management teams is a key element of our investment process. Understanding the vision of a company, knowing what differentiates them versus their competitors and what they plan to do with their cash flow ultimately determines what we think a stock is worth. We continuously track financial performance for our holdings to ensure companies are meeting our expectations.

Technical Analysis

Many investors make emotional mistakes when deciding to buy or sell a stock, such as chasing stocks that have risen sharply or trying to catch a falling knife. Our strict technical rules help guard against these pitfalls. Once we decide we want to invest in a company, the technical rules help guide our entry and exit points to maximize the value of turnover.

Risk Management

The overall portfolio is monitored for a wide variety of risk metrics, such as market beta, sector weights, size and growth versus value. While we expect our security selection process will lead us to certain areas of the market we deem more attractive, we also ensure that we understand every risk in the portfolio and manage them accordingly.

A key focus of NBW Capital is delivering investment portfolios that outperform their benchmarks. We offer a variety of strategies that can be combined to meet our clients’ individual risk tolerances. In addition to products designed to beat the overall market, as measured by the S&P 500 Index, the firm also has a long history of delivering alpha versus the Alerian Total Return Index. When appropriate, we utilize our in-house bond expertise to offer balanced portfolios.

Core Equity

Investing across the market capitalization spectrum, the primary objective is to create a diversified portfolio that achieves total returns that are superior to the broad market indices over a market cycle. The portfolios are invested in equity securities and may include ETFs and ETNs.

MLP

Investing in companies focused on the U.S. energy midstream industry, the primary objective is to create a portfolio that achieves total returns that are superior to the Alerian Total Return Index. The portfolios are invested in Master Limited Partnerships (MLPs) as well as C-corps focused on energy infrastructure.

Growth and Income

Using a blend of our Core Equity and MLP strategy, the primary objective is to achieve total returns that are superior to the broad market indices as well as higher dividend yields. The portfolios are invested in equity securities, MLPs and may include ETFs and ETNs.

Balanced

The primary objective is to create a conservative, diversified portfolio that achieves total volatility that is below the broad market indices. The portfolios may be invested in equity securities, bonds, MLPs and may include ETFs and ETNs.