Investment Philosophy

At Boston Harbor, we believe that large market capitalization companies, such as those included in the S&P 500 Index, constitute an excellent investment selection universe. To be included in such an index, companies have to possess both competitive advantages and the financial resources to survive difficult economic cycles. We believe that the market is reasonably efficient in setting the share prices of such securities, so we do not attempt to challenge their market valuations. Instead, we carefully analyze their financial statements to identify those that have fundamentals characteristics that indicate to us a likelihood of performing better than the expectations embedded in their market price. We use this unique, proprietary, analytical process to select portfolios of large-cap low volatility-risk stocks. In a 26.75 year study of SEC form 10-K fundamental data, the audited hypothetical returns of the selected stocks significantly outperformed the S&P 500 with lower volatility risk.

Boston Harbor does not believe that the investor must accept higher than market risk to obtain higher than market returns.