Satellite

For the Satellite component of our portfolios, we gain broad exposure to wide moat and some narrow moat stocks that are purchased and rebalanced based on a price-to-fair value methodology. We purchase multiple sources of subscription-only research that provides discounted cash flow business valuation research to identified companies with defensible businesses that are trading at reasonable prices.


The Morningstar Wide Moat Focus Index maintained by Morningstar is an example of the potential power in investing in stocks with sustainable competitive advantages when they trade at reasonable prices. This active index of wide moat stocks selected and rebalanced based on price-to-fair value has provided excellent value-added returns over a broad-market index for its moderately higher volatility. For the Satellite portion of our portfolios, we use a similar selection and rebalancing process within our separately managed accounts. In our portfolios, the allocations and ranges to Core and Satellite are defined within each clients Investment Policy Statement.



Morningstar Wide Moat Focus Index usually contains 40-60 stocks and is rebalanced quarterly based on price-to-fair value ratio. Past performance is no assurance of future results.

Data source: Morningstar