Fortunato 3
Dividend and Income Strategy
(Our “6% Solution”)
Objectives: Seeks Consistent Income stream in conservative investments with some potential for capital appreciation, with a goal of 6% annualized return after fees. Long Term Horizon
Strategy: Invests in dividend paying equities, MLPs, preferred securities, t-bills and notes, fixed income bond funds usually of short duration, corporate bonds, and Maintains no leverage.
Our Fortunato 3 strategy focuses on generating a consistent above average income stream through investment in the above listed investment instruments. We look for mis-priced risk in various types of fixed or high income securities. We may invest in corporate or government bonds, taxable or tax-free bonds or bond funds, closed end fixed income funds that invest in securities anywhere in the world, or stocks with higher than normal dividends that may have potential for appreciation.
The investments may be short, medium, or long term in nature to allow maximum flexibility in fluctuating markets. While any percentage of the assets under management in the strategy may be held in cash, our goal is to keep at least 80% of the assets invested at all times. Tax is a major consideration of the strategy, and we attempt to manage the strategy with tax advantaged methods in mind.
CHARACTERISTICS OF FORTUNATO 3:
- Hold between 5 and 30 positions in the above listed types of securities allowing for concentration of best idea
- While we invest with a Long Term ownership horizon goal, we are always mindful of changing interest rate environments (both term and globally) and adjust the portfolio as necessary.
- Consistent Income stream from investments
- Lower risk/return profile than the equity markets
- Less volatility than the equity markets
