Since January 2001, Parvin (formerly SWAN Asset Management) has been offering its portfolio management strategies to address the investment requirements of the individuals and families we serve.
Our objective is to preserve capital and to provide higher risk-adjusted returns than the market. To accomplish this goal, we concentrate on the fundamental importance of value and profitability.
Equity portfolios are constructed with focused positions since we view too much diversification as lowering the opportunity for higher returns without reducing risk. As a result, we build portfolios with stocks that are typically spread among 20 equal-weighted positions. In general, we look for stock holdings that are usually characterized by:
- high returns on capital;
- steady earnings growth;
- reasonable valuation;
- substantial income, as appropriate; and
- diversification across six, or more, economic sectors.
In our view, higher returns are earned by investing ahead of the market, not by following its trends. We believe investment success depends on:
- disciplined analysis;
- reasoned judgment of value;
- confidence to buy at marked-down prices; and
- patience to let profitable companies be recognized.
We work to incorporate this perspective across all portfolios managed at Parvin.
We concentrate our stock selection process on research and analysis in an attempt to find consistently profitable, well-managed businesses with meaningful competitive advantages, and to purchase these companies at prices below their intrinsic values. This approach usually results in relatively conservative portfolio positions.
Managing risk is a critical aspect of any investment process. The preservation of capital is an important goal at Parvin,
but there is no guarantee against loss since risk is inherent in every capital allocation decision.
All portfolios are held by independent custodians.