Investment Approach

Investment Process & Philosophy
The investment process begins with the development of an Investment Policy and Guideline statement tailored specifically for each client. Working with each client, the existing assets and asset allocation are analyzed, The client’s objectives are reviewed as well as the tolerance for risk, investment time horizon, liquidity, income needs, and tax situation. From this process a policy and guideline is recommended and established for the management of each client’s portfolio. Specific equity and fixed income securities are selected in a portfolio designed to assist each client in reaching their goals and objectives. This process is ongoing, with adjustments made over time as each individual’s unique circumstances change.

Identify Objectives

  • Client profile
  • Risk tolerance/return objectives
  • Cash flow/income needs
  • Investment horizon
  • Evaluate current portfolio
  • Tax planning

Create Investment Policy Statement

  • Formalize investment objectives
  • Establish risk/reward parameters
  • Select asset classes
  • Define allocation constraints
  • Set guidelines for performance evaluation

Equity Investment Philosophy
Eagle Harbor’s equity investment philosophy focuses on quality and growth at a reasonable price. Portfolios are diversified across economic sectors. With fundamental research close attention is paid to quality characteristics such as strong balance sheets, an above average return on shareholder’s equity, and positive cash generating abilities. Emphasis is placed on searching for companies that have a proven ability to grow revenues and earnings over a long time horizon. Valuation disparities sought out to take advantage of attractive opportunities in the marketplace. The Eagle Harbor investment style has a long-term focus resulting in reduced turnover in client portfolios, and potentially lower taxes and brokerage commissions.


Price/Earnings Ratio (P/E)
Relative to historical, market, industry, growth rate
Dividend Yield
Absolute and Relative

Balance Sheet Strength
(financial quality)
Returns on Shareholder’s Equity (management quality)
Cash Flow Generation (true earnings quality)
Growth Rates (historical and projected)
Revenues • Earnings • Dividends

The research process is diligent and independent. Various databases are utilized to screen for investment ideas. Fundamentals of each idea are scrutinized and supplemented with industry and sector analysis. Eagle Harbor is provided with Research that is made available by a variety of Wall Street analysts, strategists and economists. This allows access to a variety of opinions to see what “The Street’s” perspective is on a company to enhance the in house research at Eagle Harbor.

Fixed Income
For fixed income investments, portfolios are diversified with investment grade bonds determined in part by tax parameters. To minimize risk, long-term maturities are avoided. By focusing on investment grade bonds with short to intermediate maturities, investors are better served from a safety and income perspective.

In managing a fixed income portfolio or that portion of a balanced portfolio, Eagle Harbor’s fixed income objective is to maximize after tax income and total returns by identifying favorable sectors and optimal areas of the yield curve. The focus is on intermediate maturities with a credit quality of “A” or better to minimize risk.

Eagle Harbor’s investment philosophy and strategy is to provide high current income, principal protection, and portfolio diversification. Fixed income investments are diversified with government, agency, corporate, and municipal bonds proportionate to the unique taxable circumstances for each account.  Durations are adjusted proactively in anticipation of interest rate changes between short and intermediate length maturities.  Investment opportunities are identified in sectors that deviate from historical norms.  The yield curve is analyzed to optimize the risk and return trade-off; and the credit quality is improved when possible to take advantage of instances of mispricing or an overreaction to a trend or event.