Investment Style/ Philosophy
Pinnacle’s U.S. Equity Large Cap portfolio incorporates a “core” investment management approach in which we strive to capitalize on changing secular and cyclical economic trends. The objective is to achieve superior, risk adjusted returns within the large cap core universe (equities greater than $ 3 billion). The portfolio is managed using a “top down” sector oriented-style, which is unique from other managers who utilize a more common growth or value approach. Whereas other managers may rely exclusively on market timing or stock selection, our approach is distinct. Pinnacle utilizes a four-step approach that allows us to capture trends occurring in the larger macro-economic picture, the shorter business cycle, and the more bottoms-up valuation trends and earnings revisions.

Investment Process
Using the S&P500 as the security universe for the large cap portfolio, the team conducts internal research and analysis by applying a number of proprietary screens to identify prospective portfolio positions. Some of these screens include; return on equity, price momentum, insider activity, financial strength and free cash flow yield. We estimate that two-thirds of research ideas are generated internally. Portfolio managers primarily function as research analysts. A new purchase idea is typically generated by reading company filings with the SEC, sell-side research reports and industry periodicals. The team attends industry conferences, and/or meets with company managements one on one. The portfolio manager/analyst who generates a purchase idea presents his/her analysis at the weekly investment meeting. External ideas are normally obtained from smaller research boutiques. We rely on these firms due to their extensive knowledge of specific industries. Also, we like the fact that they have no investment banking relationships with the companies they follow.

Client Communication
We encourage client meetings as frequently as needed in order to build the trust that is essential in any client-advisor relationship. We generally have met with clients one or two times a year, depending on the client’s needs. Also, conference calls, written updates, etc., are important elements of our client communication strategy. Harold Stein, Chief Investment Strategist and Ken Sobolewski, our Director of Marketing, would be the primary contacts for this account. Two senior professionals will be assigned to the account from the large cap team. Our Director of Marketing will also service the account and coordinate the client’s service strategy. These professionals will be available for all meetings related to the account throughout the year. Clients will also have access to many other members of the Pinnacle team to assist them with various issues, such as: contracts, billing, and operational issues.

Team
Pinnacle’s U.S. Equity Large Cap team consists of Harold Stein, Chief Investment Strategist and team leader, senior portfolio managers James Ferrare and King Harris.