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Sector Diversification

One of the cruel lessons of the worst bear market since the Depression was the loss of capital because of an unprecedented concentration in a few industry sectors. Capital & Security Management believes that a portfolio with widely diversified industry sectors leads to successful long-term performance. We strategically use fundamental and technical analyses to make modest shifts periodically among sectors. This strategy enhances upside performance and reduces downside risk.

As predominately large capitalization growth and value common stock managers, we screen for earnings and dividend growth, focusing on industry leaders with higher dividends and/or lower price to earnings ratios. In other words, we seek growth at a reasonable price. Our investment team continually screens stocks for financial strength and earnings consistency.