Individual Clients
At Redmond Asset Management, we believe in a consistent and disciplined approach to investing. Each client’s personal goals, liquidity needs, time horizon, and tolerance for risk are always the driving considerations in portfolio construction.
Our intentionally small client base gives us the ability to meet the specific needs of each client without ever compromising our dedication to high levels of client service.
Of course, we recognize that we cannot be all things to all people, but we are happy to work with a variety of complex accounts. For some investors, that may mean helping with Family LLCs, Trusts, or Estates. For others, it could mean structuring a portfolio in order to meet periodic cash needs. Perhaps a client needs help with stock options, ownership of a private company, or managing large holdings with a low cost basis. Whatever the situation, we will always work with each client to determine the most appropriate course of action.
Our Philosophy
Invest in Great Growth Companies
- Outstanding management and corporate culture
- Industry or niche dominance with sound business model
- High Profitability – exhibited by high and stable RAM margins
- Strong Balance Sheets
- Disciplined use/reinvestment of cash
- Effective managers allocate cash wisely
Growth
*Assets under management figure is an estimate, includes non-discretionary separate account assets, and is subject to change.
Equity Investment Process
Equity Investment Philosophy
I. Find long term investments in Great Growth Companies through bottom-up stock picking.
II. Great Growth Companies exhibit the following:
- Outstanding Management and Corporate Culture
- Industry or Niche Dominance
- High or Rapidly Growing RAM Margins (proprietary calculation)
- Disciplined use/reinvestment of Cash
III. We believe our stocks could outperform the stock market over the long run because:
- Cash generation creates wealth for the company
- Prudent reinvestment of that cash increases company wealth even more!
- Eventually, an increase in company wealth may translate into proportionately higher stock prices
Equity Sell Discipline
Fundamental Disciplines (Resulting in complete sale)
- Loss of confidence in management
- Fundamental deterioration – i.e. no longer meets the RAM Margin or Fundamental Growth of the screen
- Price Related Disciplines
Overvaluation – reduce or eliminate position
- Monitor holdings for absolute and relative performance
