Investment Approach

As our name suggests, our philosophy is to use an orderly, logical and understandable process with the objective of providing a fundamental, low risk and low fee approach in building customized portfolios

Our Philosophy

Coerente Capital Management’s investment style can be best described as “Growth at a Reasonable Price”

The firm’s focus is on identifying quality companies with enduring businesses that are well managed as well as demonstrating good governance and sustainability. The emphasis is on large capitalization companies with steady cash flows. After these are identified, the main criteria for stock selection is proper valuation.

We use internal fundamental research to properly identify and value equity candidates which meet our investment criteria. Internal research is supplemented by some external research products and services. The firm invests for the long-term and avoids short-term speculation. Portfolio turnover is low which results in less trading expenses and taxes.

As a risk control measure, all equity research is funnelled through our weekly investment meeting which is attended by all investment professionals. We utilize this process to ensure that the firm’s investment philosophy is adhered to and to properly vet new ideas.

Coerente Capital Management’s fixed income style is an extension of the equity research process. As such, the firm places an emphasis on the direct purchase of corporate bonds and preferred shares in order to maximize yield. Aggressive interest rate anticipation strategies are strictly avoided.

Client Service

The firm’s objective is to build enduring, long-term relationships with all our clients. It is extremely important to have a clear understanding of client needs and objectives.

Therefore, at the outset of a new mandate, we require a detailed discussion with the client in order to ascertain risk tolerance, income/growth objectives, investment restrictions, if any, and ultimately asset mix parameters.

We report to clients on a monthly basis. The report details a portfolio valuation along with a letter describing any recent changes to the portfolio or overall strategy.
Quarterly, clients receive a more detailed report with performance analysis and our investment outlook.
We encourage regular client meetings in order to review portfolios and to ensure that the investment policy is consistent with client objectives.
Fees are low and start at 0.5 of 1% and taper lower for larger portfolios.
Partners of Coerente Capital Management invest in the same securities as our clients, ensuring that their respective interests are aligned.