Services

Services

 

Highgate Securities Investments was founded by John Goltermann, CFA, CPA, CGMA with the express purpose of providing you excellence in investment management and superior client advocacy for a fee lower than most of our competitors. We aspire to do one thing well: to maximize your investment returns through well-chosen assets and with an appropriate level of risk.business meetingHighgate is built to be a trusted source and superb choice among boutique investment firms. We seek to create positive economic impact and continued value for our clients. We will do this by building the firm on a strong foundation of intellectual and financial capital, attracting extraordinary people and helping to deliver results, realize value and instill growth.

We will help you with the three common goals that every investor should have:

1) To build a portfolio appropriate to your financial situation;
2) To not overpay for any investment; and
3) To understand both the upside and the downside case for each investment.

The process of engaging Highgate begins with sharing information. First, we seek to understand your unique background, your financial circumstances and your goals. We then craft an appropriate and customized investment plan to best help you and your loved ones. Whether it is philanthropy or legacy goals, or if you simply have obligations to fund, e.g., college expenses, home purchases, retirement, we will work with you and your other advisors to create a plan to help you get there.

 

Two Distinct Investment Strategies

For your long-term investments (equities) we offer two distinct strategies depending on your objectives and preferences. We offer both a Capital Appreciation and a Dividend Growth portfolio. Capital Appreciation would be appropriate for clients who want to earn the highest return and who can tolerate a bit more volatility (price swings) in their investment portfolio. Dividend Growth may be more appropriate for those clients who are approaching the end of their earning years, or who want to emphasize the receipt of growing cash dividends within their portfolio.

Each strategy will typically be constructed with a combination of 25 – 35 individual stocks and a handful of mutual funds and/or ETFs. This provides the optimal benefits of diversification. Research shows that portfolios that deviate significantly from the benchmark can often outperform over time. All positions will be selected because they have the potential to provide long-term upside. ETFs and/or funds will be selected for the same reasons but are in areas that are outside our circle of competence, e.g., emerging markets.

 

Our Investment Process

We believe in the Warren Buffett advice that “it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” We seek wonderful companies at better than a fair price. This goal, as well as the following elements and beliefs, are applied to both of the investment strategies that we manage:

Idea Generation – Successful idea generation hinges on the ability to recognize a great company when you see one. The knowledge gained from long holding periods, as well as a systematic examination of winners, losers, misses and near-misses sharpens and continues to improve our ability to identify potential.

Discipline – Besides finding great businesses and having the discipline to purchase shares at a price below their intrinsic value increases the likelihood of an attractive future return. Yet it is also important to know that we (or anyone) would be unlikely to be able to successfully purchase shares at a fair price during the height of the company’s popularity on Wall Street. A large part of investment success is achieved simply by not overpaying for any stock.

Patience – We think in terms of years and decades, not months and days. The path to large financial returns can be long and winding, requiring a great deal of patience and a healthy disregard for benchmarks. Stock prices reflect both the health of the underlying business and investor sentiment about future business prospects. As such, investment prices change far more than the underlying business does. The patient investor is not misled by market euphoria nor market despair.

Diligence – The Golden Rule of risk mitigation is to know what you own. Before we commit to owning a stock, we seek comprehensive understanding of the business and the industry in which it competes.

Intelligent Allocation of Capital – By following our process, we believe we will limit the number of mistakes. By allocating incremental capital toward positions that meet our expectations and away from those that don’t, we essentially starve the mistakes out of our portfolios.

When it comes to making the investments in each of our strategies, stock price volatility can be beneficial. We expect price volatility and exploit it to purchase great businesses when they are temporarily “on sale” for reasons that we believe will have a minimal impact on the business’s long-term value-creating potential.