Menu
Many advisors rely on age and risk tolerance to place clients into generic model portfolios primarily composed almost entirely of mutual funds, do a legally required annual contact, rebalance the portfolio to the model, and collect a fee. Red Rock Capital Management believes that in actively managing a client’s portfolio, buying carefully selected stocks, you can have significantly better returns. Every day, your portfolio is monitored and changed as necessary to ensure lagging stocks are sold and the best performing stocks are bought. Your portfolio is actively managed because the market is constantly changing, and it is essential to adapt to maximize returns. We don’t invest client money in hedge funds, private equity or mutual funds. The stocks you’ll have in your portfolio will be very high quality and leading companies in leading sectors.
We understand that every person has unique needs, goals, and concerns. If the model portfolio isn’t fully aligned with your goals or preferences, then a unique strategy will be tailored just for you. Whether you prefer the conservative positioning of investment-grade bonds or the Model Portfolio, or a combination, Red Rock Capital Management is flexible to satisfy your demands.
First, an algorithm designed to find stocks in a clear uptrend is used. The algorithm operates over multiple different time frames to ensure each stock’s path of the least resistance is to the upside. The algorithm also checks to prevent purchasing overbought stocks that may face imminent pullbacks.
The second aspect involves rigorous fundamental analysis. After pinpointing the most promising charts, each stock undergoes a thorough evaluation to confirm it is indeed a high-quality company. Central to this assessment is corporate profitability; only stocks with positive earnings are considered. It doesn’t matter if the company is projected to turn a profit in 6 months, current positive earnings are a non-negotiable requirement for selection. Another thing that is checked is earnings per share (EPS), favoring those with an upward and (ideally) accelerating trend. To counter potential EPS growth via stock buybacks, revenue trends, which really can’t be manipulated, are also checked, seeking steadily growing figures that reflect genuine business health.
Once stocks with exceptional charts and fundamentals are identified, they earn a place in the portfolios. Only the best of the best make the cut, ensuring that when you entrust your portfolio to Red Rock Capital Management, you benefit from a honed process dedicated to growing your wealth. No more than 3% of your portfolio will be put into a stock or option position, although it can grow to over 3% on its own, and sometimes more than 3% will be put into exchange traded funds to fill out your portfolio.
Copyright © 2024 Red Rock Capital Management, All Rights Reserved.