Even the best company can be a poor investment if it is purchased at an excessive price. Synergy Capital Asset Management Limited looks closely at every investment candidate to try to determine the company’s true value. If we feel the valuation is excessive, we avoid investing in the company.
Avoid unnecessary taxes and transaction costs.
Since many of our clients are concerned about capital gains taxes, we try to limit portfolio turnover. Recently, our portfolio turnover has averaged about 15%, which compares favorably with many institutional strategies with turnover rates of 100% or more per year. Although circumstances can change, we always do our best to balance the cost of taxes versus the risk of loss that can arise from holding an overpriced stock or bond.