Strategies & Performance

Investment Strategies

Symons® Capital Management offers three investment strategies:

Below you will find a brief description of each strategy as well as links to more detailed performance and related information.

 

The investment strategies are intellectual siblings.

Symons Investment Strategies

Symons® Capital Management’s core goal is to build durable wealth by managing risk over full market cycles.  Symons® Capital Management’s three investment strategies offer investors three different paths to the core goal.

Our three investment strategies are based on the same disciplined, consistent investment process (outlined here), which involves both top-down macro research and bottom-up equity research. We are pretty unique in that we do both. We gauge the economic environment, the market environment and then pick stocks using that macro lens.

  • Symons® Value – build durable wealth by providing material capital protection and strong absolute returns over full market cycles (approximately 25-40 stocks).
  • Symons® Strategic Wealth – build durable wealth by providing strong relative returns versus the market index over full market cycles with substantial capital protection in down markets (approximately 60-90 stocks). Due to its relative-to-benchmark tilt, the strategy tends to expose portfolios to a bit more risk/reward than does Symons® Value – thus exposing portfolios to a bit more upside potential and a bit more downside risk.
  • Symons® Small Cap Value – build durable wealth by providing material capital protection and strong absolute returns over full market cycles with holdings limited to small cap stocks (approximately 40-60 stocks).

Symons® Value

The path taken by Symons® Value to build durable wealth is to find low-risk, high reward stocks. While such stocks often are classified as “value” (and the Symons® Value portfolio often has a value stock bent), that classification is not a necessary factor in building the Symons® Value portfolio. Rather, if we see good opportunities in ‘growth’ stocks (and we think that may be a long time from now), we are perfectly fine with going after them as long as they represent good risk-reward opportunities. While Symons® Value has a clear risk management focus, investors have to take some risk to get a reward. Overall, Symons® Value represents an investment path with a value bent, seeking absolute returns independent of any benchmark index, and seeking to avoid big drawdowns.

This Value performance summary shows the net returns to our clients after management fees, trading expenses and foreign withholding taxes (where applicable):

Symons Value Composite
Strategic Wealth GIPS

Symons® Strategic Wealth

The path taken by Symons® Strategic Wealth to build durable wealth is both to find low-risk, high-reward stocks and to outperform the benchmark S&P500® Index as much as possible and as often as possible. We do this by seeking out good risk-reward situations, and by always being fully invested. Because a major focus of Symons® Strategic Wealth is to outperform the S&P500® Index (in distinction to the Symons® Value path of building durable wealth on an absolute basis), we select certain portfolio holdings to build that relative, rather than absolute, performance focus. For example, while Symons® Value may not hold a particular stock, because that stock has a big market cap in the Index, (and provided that we don’t hate it but don’t love it and so do not hold it in Symons® Value), it may make sense to have an underweight position in that stock in Symons® Strategic Wealth rather than no position. Symons® Strategic Wealth may have somewhat higher turnover than Symons® Value due to Symons® Strategic Wealth’s greater benchmark focus. Again, the basic difference between Symons® Strategic Wealth and Symons® Value is Symons® Strategic Wealth’s added focus on beating the market vs. Symons® Value’s sole focus on finding high reward/low risk investment opportunities. Overall, Symons® Strategic Wealth represents an investment path that is more of a traditional core strategy than is Symons® Value, and so it provides an easier psychological path than does Symons® Value, while Symons® Value provides a safer wealth preservation path.

This Strategic Wealth performance summary shows the net returns to our clients after management fees, trading expenses and foreign withholding taxes (where applicable):

Strategic Wealth
Strategic Wealth GIPS

Symons® Small Cap Value

The path taken by Symons® Small Cap Value to build durable wealth is similar to Symons® Value’s path, but with a bit of Symons® Strategic Wealth’s market beating focus as an additional consideration due to the greater volatility of small cap stocks compared to large cap stocks. In addition, Symons® Small Cap Value’s holdings are limited to stocks with market capitalizations of $3 billion or less at the time of purchase. Individual small cap stocks tend to be more idiosyncratic than larger cap stocks, and so researching them is a bit more work. For example, a particular company may have only one important product, or only a few major customers. In addition, there is less small cap research coverage available, which can make it more difficult to identify what other people are keyed on as we judge the risk/reward opportunity, which is an analytical tool we find helpful in researching larger cap stocks. Overall, Symons® Small Cap Value represents an investment path between the paths of Symons® Value and Symons® Strategic Wealth, seeking to preserve wealth and limit downside risk, while being aware of the benchmark index to moderate the potential volatility of relative returns in the small cap space.

This Small Cap Value performance summary shows the net returns to our clients after management fees, trading expenses and foreign withholding taxes (where applicable):

Symons Small Cap
Strategic Wealth GIPS