Our Process
Individualized attention addresses a client’s needs, even when changed. Our investment team tailors a portfolio specific your unique investment objectives.
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Fundamental Research
Fundamental Research
- The overall economy is the main driver of returns it sets the foundation.
- HVIA gains information directly from sources that include, the Federal Reserve, Economic Consultants, and institutional research groups.
- We develop a mosaic of information to help guide our overall process.
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Equity Selection
Equity Selection
- Hudson Valley Investment Advisors, Inc. are GARP investors. (Growth At A Reasonable Price).
- It starts with buying stocks in sectors with high expected growth metrics vs the overall market.
- We use a return on equity ratio to look into company attributes.
- We look at management, business models, market position, cash flow levels, profitability, and expense ratios.
- We compare them to their competition to find an advantage.
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Fixed Income Selection
Fixed Income Selection
- We start with a top down forecast to determine an interest rate view.
- Our overall view on the economy and interest rates impact the risk profile of the individual portfolio.
- All things being equal we prefer to buy quality for our clients, we remain disciplined about getting paid adequately for any risk that we take.
- We have the ability to purchase and sell bonds through major institutional desks. By purchasing in volume, where applicable, we can provide better pricing for our clients.
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Portfolio Risk Mitigation
Portfolio Risk Mitigation
- We believe in balance and diversification among major assets classes.
- Diversification within market capitalization, sectors, and industries are also taken into consideration.
- HVIA utilizes risk factor models in order to better understand the model portfolio’s risk characteristics to limit downside impact to changing market conditions.
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Portfolio Monitoring and Rebalancing
Portfolio Monitoring and Rebalancing
- Our Investment Policy Committee meets weekly to discuss and review our strategic and tactical portfolio allocation.
- When required our portfolios are rebalanced to take advantage of ever changing economic trends.