Equity Large Cap
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.
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.
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.
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.