Equity Investing
We seek to buy growing, profitable, and well-capitalized businesses at reasonable prices. The habit of relating quality to value is central to the WCA equity investing process.
Asset Allocation
A comprehensive suite of asset allocation portfolios focused on matching investment objectives with risk tolerance. Both passive and active strategies are offered.
Fixed Income
This portfolio seeks to generate a stream of income from a portfolio of 30 investment-grade corporate bonds. The portfolio is constructed as a “ladder” with maturities spanning 10 years.
Recent Commentary
Putting Dividend Growth to the Test
The pandemic provides a test for our crucial proposition that dividend growth points to quality. We look at recent evidence since the pandemic’s beginning to test this proposition. We find great similarity in performance of dividend growers and high quality on the one hand, and dividend cutters and low quality on the other. We also question whether the risk of owning this year’s outperforming low-quality, dividend cutters is really worth the much higher volatility of such stocks.
MuniWatch — Fall 2021
Have you noticed more crowded roads and airports lately? The benefits of reopening are now seen across many sectors, and the municipal bond market is paying attention. This report explores how the process of reopening the economy is impacting municipal bond issuers and investors. Highlights The Muni curve steepened in the third quarter, slightly underperforming U.S. Treasuries, in very quiet trading activity. Flows into Muni Mutual Funds continued their torrid pace as increased taxes become more certain. The reopening economy has benefited Munis, too. Part 1 of our Muni Market Education Series: Why the High Coupon?
Q4 2021 Tactical Asset Allocation
Amid an otherwise positive backdrop, supply shortages, uncertainty over economic policy, and high valuations for financial assets are apparent. We remain tactically overweight stocks, but reduce exposure, shifting somewhat toward bonds. This report addresses how WCA tactical portfolios are positioned now to address short and longer-term factors.