Fixed Income Philosophy

Bonds have fixed upside and 100% downside so we are not interested in "stretching for yield" to pick up an extra half percent. Our objective is preservation of capital and our focus is on return of capital. We purchase bonds from issuers with strong financial positions and high interest coverage ratios. We buy and hold until maturity and use a laddered approach to hedge interest rate risk. We predominantly use tax-free municipal bonds for our tax-sensitive investors, high-grade corporate, and treasury bonds.