Our Philosophy

Our Investment Philosophy:

How Your Portfolio Will Be Managed.


North Star Asset Management tailors each portfolio to meet the specific needs and objectives of our clients primarily through a combination of high quality, consistent growth companies and investment grade fixed income securities.  Though each portfolio is unique, the majority of the investments are consistent with a model portfolio developed by our team of investment professionals.  We customize the risk of each portfolio primarily by adjusting the level of stocks and bonds rather than changing the mix of individual securities, although each portfolio manager has the flexibility to invest in securities that are appropriate for each clients risk tolerance.  By limiting the ratio of clients per portfolio manager, we ensure that our portfolio managers have the time necessary for properly assessing client objectives and developing and implementing a portfolio strategy to meet those needs. 


We utilize a team approach with eleven investment professionals working together to provide personalized portfolio management services by researching and investing in consistent growth companies and appropriate fixed income securities. Each portfolio is guided by a veteran manager with the resources and experience of the entire team in support. All portfolios are reviewed regularly by the entire investment team.


Our team of investment professionals evaluates investment opportunities through proprietary, fundamental analysis, involving company visits, input from Wall Street, and the utilization of a dividend discount valuation model.  Our equity portfolios are invested in a select number of stocks representing 15-20 industries.  Holdings of individual securities are generally limited to no more than 7% of an equity portfolio.  This provides sufficient diversification while permitting us to leverage our internal research.  By diversifying between large, medium, and small stocks along with growth, value and international stocks, NSAM provides broad diversification for its clients.  This flexibility allows us to invest in the most attractive companies regardless of their size or geographic location.


North Star Asset Management believes in long-term investing.  We have relatively low portfolio turnover, thereby avoiding excessive trading costs.  Our equity portfolio turnover is approximately 20% annually, resulting in an average holding period of approximately 5 years.  This turnover is significantly below industry averages.  In addition to minimizing trading expenses, the low turnover reduces potential tax liabilities.


While the firm utilizes a low portfolio turnover approach, it also recognizes the need to be flexible and take action when the fundamentals warrant the sale of an investment.  Other key elements of our sell discipline include disposing of investments when they materially exceed fair value, when holdings can be modified to enhance returns, or when prudence dictates portfolio diversification.


Although our dividend discount valuation model and fundamental research provide valuable input and our investment philosophy adds discipline, there are no substitutes for knowledge and experience when making investment decisions.  To that end, our investment professionals continuously review current holdings, security recommendations, and portfolio strategy for each account.


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