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Investment Solutions

Research Philosophy

Three Elements - These are key drivers to our investment decisions; the central nervous system of our process.

Fundamental

We favor undervalued, mispriced assets, that have been unfairly discounted by Wall Street, based upon our research. The Napatree Capital investment committee utilizes a quantitative process which combines both fundamental and technical analysis in arriving at investment decisions.

Behavioral

Our investment committee monitors investor sentiment in order to avoid the herd mentality of a crowded idea. We strongly feel the behavioral aspect of investing – from fear to greed - is often overlooked, particularly during major turning points in the market.

Relative Value

Investors have choices to deploy capital, which creates an opportunity set and an opportunity cost of each decision. We evaluate each investment idea based on its individual merits as well the ability for that investment to outperform on a relative basis.

Proprietary Investment Strategies

Strategic Asset Allocation

Napatree Capital uses a disciplined, asset allocation process to invest client assets across a diversified range of categories. Research has shown that allocating among markets of differing size and geographic focus should provide optimal risk-adjusted returns throughout market cycles. The term “strategic” refers to long-term, where targets are set for various categories and periodic rebalancing takes place to adhere to those targets.

Asset Allocation Strategies are rebalanced twice per year on a calendar basis or when category weights exceed their minimum or maximum range(s). This provides a systematic process of selling into strength and buying on weakness.

Tactical Rotation

Comprised of low-cost, passively managed sector and industry exchange traded funds (ETFs), the strategy seeks to provide capital appreciation over time. We employ a ranking system to identify the sectors that exhibit relative strength against the S&P 500 in terms of both value and performance, increasing the strategy’s exposure to those sectors while avoiding the sectors that are underperforming. The strategy is meant to be highly correlated to the S&P 500 with the aim to provide the investor better risk-adjusted returns.

This strategy typically holds 15-25 exchange traded funds and is benchmarked against the S&P 500.

Focused Value

The main objective of the strategy is long term capital appreciation. We seek investments that have core, quality operating businesses, unfairly discounted by the market. We use a combined qualitative and quantitative approach, centered on financial statement analysis and fundamental research, with a technical overlay to help assess both sentiment and risk. We feel strongly that being positioned against the crowd yields longer term investment success.

The strategy typically holds 40-50 stocks and is benchmarked against the Russell 1000 Value Index.

Let us answer your questions.

Want to learn more? One of our core tenets at Napatree Capital is accessibility. Contact us today; we’d love the opportunity to get to know you and your goals and answer any questions you may have.

Contact Us

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Tel: (401) 868-1115
[email protected]

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Westerly
90 Beach Street
Westerly, RI 02891

Longmeadow
734 Longmeadow Street
1st Floor
Longmeadow, MA 01106

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