Who We Are & What We Do
Fee-Based Investment Advising
VZD Capital Management is a fee-based investment advisor. We align our client’s interests with ours by offering fee-based investment management and advisory services. Our business model is simple. As a fee-based investment management firm, we do not sell investment products nor accept any compensation from third parties (commissions, referral fees, etc.). We aspire to have only a limited number of clients, but to provide personal service and attention to each one of them.
Customized Investment Solutions
The firm’s mission is to address each client individually by designing an investment management policy that increases the client’s prosperity while providing them with financial security. The goal at VZD is to help our clients maintain financial peace of mind and manage their wealth for various life transitions. VZD believes that each client deserves accountability, transparency, dedication and respect – regardless of the account size. We work with affluent individuals, families and business clients that value a personal relationship and unbiased wealth management solutions. Generally our clients share the following characteristics:
- $200,000 or greater of investable assets
- Don’t believe in attempting to time the market but believe in spending time in the market on a long term basis.
- Comfortable with on-going discretionary investment management.
- Understands the value in working with your Estate Planning and/or Business Attorney, CPAs and other professionals who have a vested interest in serving the client by working together to address the client’s overall financial well-being.
- Appreciate advisory and custodian services are independent.
Life Event PlanningWe have strength, sensitivity and experience in addressing the following life cycle changes such as:
- Loss of a spouse
- Sale of a business
- Inheritance or sudden wealth
- Qualified retirement rollovers
- Broad understanding of estate planning vehicles such as trusts, limited family partnerships and multigenerational accounts.
Customized Investment Management
Investment Aligned With Your Values
At VZD, we specialize in the ability to tailor your portfolio to meet your goals and convictions. We make it possible to exclude holdings from your portfolio which profit from objectionable products or services.
If social and/or moral values are important to you, we can help keep your money away from investments you would prefer not to participate in financially. We are committed to matching your investments core beliefs in the investments you own.
VZD recognizes that no one investment approach works in different economic climates but believe that certain strategies can lead to long-term success. Being a seasoned portfolio manager, Ethel is an open-minded professional and believes that instrumental to addressing an ever changing world where competitive forces continually produce new winners and losers. As a veteran manager, Ethel demonstrates confidence when implementing strategies but communicates with humility to discuss her proactive reaction to unforeseen, changing events and unexpected misfortunes.
Growth at a Reasonable Price
VZD utilizes a Growth at a Reasonable Price (GARP) strategy to select equities from a buy and sell perspective. The primary emphasis is to strike a balance between strong earnings and undervalued price points. Generally speaking, such companies are out of favor or seen to be the rejects from momentum investors. The stocks might have been disinherited by the street, reported disappointing earns or simply punished for unfavorable news. The catalyst is to find these “diamonds” that are temporarily down and out but have underlying fundamentals that make them attractive for future growth.
However, I am sensitive to institutional ownership, insider’s activities and too high of a price tag to buy and depending on the price, earning and growth might be the time to sell or take profits. I have a tendency to focus on mid-sized companies that typically have proven themselves but still have room to grow. VZD screens for companies with good business models, operational leverage with recurring revenues, market share leaders, competitive advantages, strong cash flow and reasonable valuations.
There are several catalysts that would cause me to sell a stock being – deteriorating fundamentals, change in the investment thesis such as market leader or management challenges, excessive valuations or if there’s a game changer within the industry or peer group.
Always Independent, Always Individualized
VZD Capital Management, LLC is an independent Registered Investment Advisory firm providing customized investment management services for individuals, IRAs, trusts, endowments and foundations. VZD will work closely with you to understand your specific investment circumstances and needs. VZD’s portfolios are individually managed according to each client’s goals, income needs, risk tolerance, and tax consequences.
As a fee-only, State Registered Investment Advisory firm, VZD is free from of any conflict of interest that could impact your investment performance. Since we do not sell investment products or receive commissions, our goals and objectives are always aligned with those of our clients. VZD takes a proactive approach to capture appreciation in up markets and preserve capital in down markets. We protect wealth as aggressively as we build wealth. The objective is to outperform the S&P 500 through the full investment cycle with robust downside protection.
Smart, Research Based Investment
At VZD Capital Management, we work to exceed the financial objectives of our clients by building custom portfolios of high quality stocks, bonds, preferred stocks and exchange-traded funds. With a disciplined in-house equity selection process, we strive to maximize total long-term returns while mitigating risk. We employ sophisticated stock screens and use independent research, such as Standard & Poor’s, Argus, Value Line and Morningstar in order to discover undervalued stocks that meet our stringent investment criteria. Stocks that trade significantly below the fair market are considered for investments.
Custom Portfolios Designed to Meet Your Goals
At VZD, we recognize that every client has unique circumstances therefore we never apply a cookie-cutter “product” to our clients’ portfolio. The first step is to understand the client’s goals and review the current assets in detail to determine that it’s in alignment with their current and future goals. Next, the Portfolio Manager utilizes proprietary fundamental research to determine the actual investment for each client account while taking into consideration the tax implications and asset allocation. Investment selection is never outsourced to external mutual fund managers, fund of funds managers or any third party research affiliates. All investments are carefully researched by the Portfolio Manager through a bottom-up fundamental investment analysis.
When market conditions and business environment for company’s changes, the Portfolio Manager continually evaluate investment opportunities and invest client assets appropriately. The Portfolio Manager evaluates a wide range of companies in a bottom-up, growth-at-a-reasonable price methodology by focusing on their revenue growth, operating efficiency, earnings expansion, financial stability and equity evaluation. To identify superior investments, we analyze a company’s fundamentals, business model, management and prospects for future growth. We look for companies that exhibit superior and sustainable earnings growth potential, whose stock trade at a discount to their intrinsic value and offer a margin of safety to mitigate downside risk.
Fixed Income Securities
We employ fixed income securities within our portfolio management to provide diversification and to offer a highly predictable and dependable income stream and to reduce volatility of the total portfolio. The portfolio portion of fixed income is actively managed in accordance to their customized investment policy and risk tolerance.
When selecting fixed income, we carefully consider the following aspects:
- Quality – the most important aspect is to ensure the fixed income securities credit risk. Credit risk is minimizing by investing in investment grade bonds no lower than a BBB or better. The objective is to maintain an average credit rating for the portfolio of “A” or higher.
- Valuation – we constantly review the fixed income to identify mispriced securities and exploit such situations.
- Broadly diversified across major issuers and segments of the bond market.
We believe in a strict sell discipline is crucial to a successful investment process. All of our investments are continuously monitored for changes in their fundamental, valuation and industry trends. Price movement alone is not necessarily a reason to sell a security. We consider selling all or partial positions if the following criteria are met:
- If the price of a company’s securities has either met or exceeded our estimate of “fair value” or if valuation levels exceed the company’s particular sector.
- The earning disappoints to the point that an immediate review of our investment thesis. We will sell if we detect or have evidence that the deterioration in a company’s fundamentals have changed.
- We trim positions as part of our periodic re-balancing process. If a single position represents grows beyond a 4% than we will trim to avoid excessive concentration and risk.
Why We're Different
VZD differ from most of our competition in a variety of ways including but not limited to:
- We are compensated exclusively by fees paid by our clients thereby allowing us to work in our clients’ best interests.
- Many of our competitors receive most, if not all of their compensation (commissions) from the products they recommend. Most of the time there are hidden commissions and fees which are not transparent to the client.
- We value personal relationships. Increasingly, investment and banking institutions are forcing clients to interact with 1-800 going no-where options. Our primary consideration is to know our clients not just as investors, but as real people with dreams and aspirations. Whenever you call, you are greeted by friendly, hard working professionals who value your business and value your time.
- Experience – Ethel J Davis have guided clients through some of the worst financial downturns in US economy history. Her leadership, discipline and knowledge to get our clients through the tough times.
- Some advisors describe themselves as fee-based which means they are paid an incentive to recommend high costs products, such as whole life and/or universal life insurance, variable annuities and A, B, & C class shares of mutual funds.