OUR APPROACH TO INVESTMENTS
Hall Capital takes time to understand each client’s needs in order to allocate the portfolio asset opportunities among stocks, bonds, mutual funds and cash equivalents. Then, through “asset mix”, a portfolio can be tilted toward current income or further capital growth with appropriate risk levels tailored for the client’s needs. Based on these needs, Hall Capital will work with the client to develop a portfolio approach that contains a prudent combination of assets. The decision-making process for determining the specific securities to include in the portfolio begins with the study of the economic situation and outlook for the next one to three years. We then, assess the posture of the market itself, as the two are related. Prior to stock purchases, Hall Capital pays as much attention to industry groups in the context of the firm’s outlook for the economy and market trends – as is spent on individual companies.
Hall Capital’s common stock investment style is designed to achieve long-term growth of principal. The team invests in industries which it considers to have above average growth prospects – companies which the firm believes are established industry leaders or companies which it feels are gaining market share within their respective industry. This approach historically has led Hall Capital to invest in both growth and value companies.
Where appropriate, the company uses a mutual fund approach for clients. The client’s investment objective, risk tolerance, and time horizon dictate the asset classes and types of stock and bond funds selected. The firm’s criteria is essentially the fund’s expense ratio and its historical results in both good and bad financial markets relative to its peers.
Hall Capital’s bond style is intended to preserve principal, generate income, and reduce portfolio volatility. The company’s credit standards are strict, leading it to select high quality investment grade bonds and bond funds. The firm’s experience has shown that short-to-intermediate term bonds and bond funds have achieved almost the same total returns as those of longer term bonds – while presenting less principal risk.