Founded on principle, built on performance.
OUR VIEW
Today, city treasurers, bankers, insurance company executives, foundation directors and other stewards of institutional assets all share the same difficult challenge: how can they achieve superior returns without jeopardizing their capital? We believe the answer is clear: put safety first and invest only in quality. That's why we've concentrated our analytical expertise and investment management experience on the securities of America's strongest and best-run companies, offering consistent revenue and earnings growth and sound balance sheets, and the debt instruments of America's strongest and best-managed municipalities and government agencies, those with excellent revenue and interest coverage characteristics. We believe the best opportunities for capital appreciation and safety are provided by America's great companies.
OUR COMMITMENT
At Garrison Asset Management, we're committed to providing our institutional clients with the highest quality research, portfolio management and client service. As an independent firm, free from outside influences, we can search the vast universe of investment options to identify those most suitable for our clients. Our research process employs both fundamental analysis and quantitative metrics, augmented by our rigorous qualitative assessments of company managements. With decades of experience in both fixed income and equity investing, our investment team knows how to customize portfolios to achieve unique client objectives, and structure accounts to meet specific trading and reporting requirements. We are committed to providing service that is as personal as it is professional.
FIXED INCOME
We built our reputation in the investment business as a fixed income manager, helping large institutions maximize income without jeopardizing capital. We use proprietary analytics to evaluate the quality and value of debt securities and manage each portfolio individually to meet specific liquidity and safety requirements and comply with the exacting regulations that govern many of our clients' investments.
FIXED INCOME STRATEGY
Managing fixed income portfolios for institutional clients requires much more than merely an ability to identify bonds with above-average yields and an above-average degree of safety. It requires a thorough understanding of the rules and regulations governing different kinds of institutional investors, and the experience to help them navigate the regulatory maze and handle their legal and fiduciary responsibilities. At Garrison, we have that knowledge and experience; we have been managing fixed income portfolios for large institutions since the mid-1970s. We've stayed on top of changing laws and regulations, especially those affecting municipalities, banks and insurance companies. We are experts at creating investment strategies for highly regulated entities, as well as more traditional institutional investors: retirement plans, corporations, non-profits, foundations and endowments. We know how to construct fixed income portfolios that achieve all four of today's essential investment objectives: income, safety, liquidity - and legality.
BOND SELECTION PROCESS
While we always construct bond portfolios to meet specific client requirements, we generally select high quality corporate, municipal, and government bonds and diversify holdings by issuer class and maturity. Our long-held relationships provide both superior access to inventories and excellent liquidity when selling. Using our own internally developed analytics, we screen the available debt by quantitative metrics, and narrow our selections through fundamental analysis of cash flow and risk characteristics of the underlying entities.
RISK MANAGEMENT
We manage risk by constructing diversified portfolios of high quality bonds for each client, and by monitoring performance of the debt and underlying entities. Our proprietary analytics also alert us to possible changes in ratings characteristics, before the ratings agencies take action, providing an added measure of protection.
EQUITIES
We bring a rigorous analytical approach to our stock selection process, employing sophisticated qualitative and quantitative research techniques to choose the most promising securities for our institutional clients' core equity portfolios. To protect capital, we observe disciplined risk management and sell criteria in the construction and management of their portfolios.
EQUITY STRATEGY
We believe great fortunes are made from owning great companies - the innovators that solve problems, create new markets, and improve our world. For equity portfolios, we generally favor a balance of growth and value stocks, especially if we can purchase them below intrinsic value. But success requires rigorous research, careful risk management, and the patience to hold through market cycles.
STOCK SELECTION PROCESS
Our research-driven investment process includes both traditional fundamental analysis and quantitative metrics. The firm focuses its efforts on identifying high quality companies whose financial strength and strategic vision provide maximum potential for long-term growth. We evaluate a company's prospect for earnings, revenue growth and margin expansion, and its track record for meeting or beating expectations. We analyze management's ability to adapt to shifting market conditions, instill tight internal controls and build shareholder value. Using quantitative metrics, we assess the stock's performance relative to others in its industry group and to the market as a whole. Our objective is to purchase high quality companies trading below projected value and hold them until their value is fully realized.
DISCIPLINED SELL CRITERIA
We utilize clearly defined sell criteria to realize profits and maintain our portfolio risk profile. On the upside, we generally sell a position when it reaches our valuation target. Conversely, a position is generally sold if there is a major earnings disappointment, a negative change in the company's outlook, or significant deterioration in any key performance measurement. An investment position may also be sold or reduced if a more attractive opportunity is identified.
RISK MANAGEMENT
We believe that risk management is as important as stock selection. Garrison's investment style - buying growth at a reasonable price or below intrinsic value - provides investors with an underlying margin of safety. Investing in companies with significant tangible assets or strong dividend policies adds further downside protection. We also manage risk through portfolio diversification, position limits and daily benchmark performance comparisons. We hold from 25 to 40 stocks in a variety of industries and sectors, limit initial positions to no more than 5% of equity holdings, and employ programs of phased-in buying and selling.
CLIENT SERVICE AND EXPERIENCE
No institutional investor is the same. Each has a distinct personality and unique requirements. We endeavor to understand each client's specific needs and tailor our portfolio management, trading and reporting activities accordingly. We founded our firm on the qualities we value most: trust, integrity and a dedication to providing highly personalized and professional client service.
CLIENT SERVICE
Personal attention is at the heart of our client service. Clients always have direct access to our principals. We understand the importance of communicating directly, clearly and in a timely manner. We are always available to answer your questions and respond promptly to telephone or email inquiries.
CUSTOMIZED TRADING AND REPORTING
As a service-oriented firm, we pay close attention to the specific trading and reporting wishes of our institutional clients. Trades are executed according to your instructions, and confirmations, statements and performance reports, monthly or quarterly, are issued as requested to investment staffs, consultants, heads of boards or committees, or each board or committee member.
QUARTERLY NEWSLETTER
We supplement your quarterly performance reports and capital statements with a quarterly newsletter offering our perspective on market conditions, investments trends and future outlook.
INDEPENDENT AND UNBIASED
Garrison Asset Management is an independent, privately-owned firm. Our investment decisions are based on our own research and not dictated by any investment bank or brokerage firm. We are not part of a large conglomerate, trying to be all things to all people. We remain focused on what we do best: managing fixed income and core equity portfolios for sophisticated clients.
OUR PRINCIPALS' EXPERIENCE
Garrison principals have more than 45 years' combined experience in the investment business.
Garrison: Institutional, a division of SEC-registered Garrison Asset Management, manages fixed income and/or equity investments for municipalities, banks, insurance companies, corporations, nonprofits, foundations and endowments. We help clients build and preserve capital and income through disciplined prudent portfolio management and a commitment to personalized service.
Garrison Institutional
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