SAM offers clients five primary portfolio strategies: Income, All-Weather, Total Alpha, Forever, and our new Venture Growth solution. At any given time, these portfolios may have some overlap with one another. This overlap reflects our view that if you can find great businesses trading at attractive prices, the ideal holding period (to paraphrase Warren Buffett) is “forever” – and that the stocks of such businesses should constitute the backbone of any portfolio. The types of businesses we’re talking about are highly capital efficient firms, often with strong brands, franchises or float-generating qualities, which also often fall into the category of “trophy assets” or best-of-breed players in their industry.
While all strategies share a common investment philosophy, there are some important differences that clients should consider when selecting strategies for their investment accounts.
- The SAM Income Strategy is designed for clients for whom reliable current income is a priority, who place a heavy emphasis on minimizing their portfolio drawdown in the event of a significant correction, and who are interested in investments beyond the traditional income universe.
- The SAM All-Weather Strategy is designed for clients seeking a portfolio with less correlation to the stock market that aims to produce gains through the full investment cycle; and/or who want some exposure to investment themes not explicitly covered by Stansberry Research.
- The SAM Total Alpha Strategy is designed for clients who are reluctant to miss out on “bull market returns,” are prepared to tolerate volatility in the event of a correction, but still want tight risk management in the event of a bona fide bear market; and/or who want a portfolio dominated by published Stansberry Research recommendations.
- The SAM Forever Strategy is designed for clients with a long investing time horizon who wish to hold high-quality businesses and are prepared to tolerate short-term volatility; clients concerned with minimizing annual capital gains taxes; and/or who want a portfolio dominated by published Stansberry Research recommendations.
- The Venture Growth Strategy is available for clients who want to have an emphasis on generating long-term capital appreciation above other investment goals. Clients investing in this strategy should be prepared to tolerate short-term volatility, and will have material exposure to investments in companies that are generally smaller and earlier in their life cycle. This strategy will also provide some exposure to investment ideas and themes not always covered by Stansberry Research as it is designed to focus on high-growth companies capitalizing on long term secular changes and trends in innovation. It can include durable and underappreciated franchises, “Network effects” businesses that get better as they get bigger, and other companies that are below their viewed long term intrinsic value.
For more detail on the portfolio options, click here.