Confluence offers a variety of investment solutions, including separately managed account portfolios, with a range of investment objectives that allow clients to select a portfolio that best suits their individual investment goals.

Equity Strategies

Our investment philosophy is a bottom-up, fundamental approach that seeks to generate above average risk-adjusted returns over the long-term by identifying businesses that possess substantial competitive advantages and that are trading at discounts to intrinsic value. Additionally these businesses typically generate free cash flow and are led by management teams that are true stewards for creating shareholder wealth.

The investment process focuses on managing risk, which we define as the probability of a permanent loss of capital, by owning quality businesses at attractive valuations. This approach strives to protect investors on the downside while providing upside potential. Over the long-term, our investment process seeks to generate above average risk-adjusted returns.

Balanced Accounts are an efficient and straightforward way to combine equity and fixed income exposure in a single account, while providing diversification and lower volatility. Clients may elect to allocate a portion of their equity portfolio to fixed income exchange-traded funds (ETFs), with a range of allocations available. Fixed income ETFs are available in a wide variety of maturities across corporate, agency and treasury sectors. We actively monitor the ETF selection to ensure that our portfolios match their objectives. Balanced account management easily accommodates systematic deposits or withdrawals and includes automatic rebalancing. Clients may choose a balanced account by selecting a fixed income allocation, which may be combined with most of our equity products.

Asset allocation is a portfolio management strategy that brings together all the assets of an investor, measuring risk and return not at the individual security level, but instead as a complete portfolio. Properly implemented, asset allocation is a time-tested approach that addresses risk through diversification, while positioning portfolios to achieve growth, income and other specific client objectives.

At Confluence Investment Management, our approach to asset allocation is more dynamic than the traditional strategies of other investment managers. We extend the traditional approach by incorporating forward-looking analytics that address changing opportunities and risks as we move through economic and market cycles. Using our dynamic approach of evaluating the investing landscape against the backdrop of the pending business cycle, we offer a variety of asset allocation portfolios, ranging from conservative to aggressive. Our conservative portfolio is focused on principal preservation and reliable income. In contrast, our aggressive portfolio is focused on higher returns, often derived from volatile, higher growth investments. In the range between our conservative and aggressive options are portfolios that balance growth and income objectives across a range of different risk profiles.

Confluence will provide a wide range of investment advisory and portfolio management services focused on the alternative investment asset classes—investments other than traditional equity and fixed income asset classes, which the Confluence team believes have the potential to achieve excess risk-adjusted returns.

The Confluence team will leverage its expertise in the disciplines of private equity, real estate, specialty finance, asset management, absolute return strategies and investment banking to develop customized, actively managed alternative investment products. We have extensive experience in the development of real estate-focused products designed to provide above average current income and long-term capital appreciation. Our private equity experience includes developing products to provide investors access to top-quartile performing private equity managers.