Alpine Saxon Woods Dividend Strategy

Overview

The Dividend strategy invests in companies that have maintained or increased dividends for at least the past 5 years. Fundamental research is performed on each company’s ability to sustain its dividend and potentially increase those payments in the future, incorporating analysis on free cash flow and numerous balance sheet metrics. The strategy is market capitalization and sector agnostic, but the nature of dividend paying companies tends to tilt towards a mid-to-large capitalization profile.  

Portfolio Construction

• Stocks with liquidity
• Normal position size 3% to 5%
• Normal number of holdings 35 to 45
• Limit security concentration to no more than 10%
• Limit sector exposure: 25% or 1.5x the benchmark, whichever is greater‍
• Fully invested
• Review quantitative risk management statistics to understand where and in what form risk exists

Risk Controls

Position Review

• Review investment thesis if stock declines 15% from initial purchase price

Sell Discipline

• Change in fundamentals
  
  • Original investment thesis has changed
  • Catalysts no longer exist
  • Operating health deterioration
  • Financial health deterioration
• Valuation
  
  • Stock reaches valuation target
• Diversification
  
  • Individual security limits
  • Sector limits