OUR PROCESS
Asset Management
Your Goals
Many investors have clear investment goals but aren’t sure how their investment should be aligned to achieve them. We design investment strategies specifically for client goals such as income or accumulation so your portfolio can be aligned to your needs.
Your Assets
At Aurora Financial Strategies, our core competency is investing in individual stocks. Our stock strategies make up the core of a client’s equity investments. We then research, select and monitor outside investment managers to provide clients with exposure to other areas such as fixed income and international equities.
Our individual stock strategies are designed to help you meet your goals. Whether you are a high net-worth investor, a pension fund, endowment, or an individual who aspires to be financially independent, we find that investors typically have one of three goals: income, accumulation, or aspirational.
Income
Our Equity Income strategy seeks to generate sustainable dividend income that grows with inflation.
Accumulation
Our Core Equity strategy seeks to participate in the total return potential of the US equity market with a slightly lower risk profile than the US stock market.
Aspirational
Our Concentrated Equity strategy seeks to maximize long-term investment returns through long-only investments in primarily US equity by concentrating investments in our best ideas.
Investment Philosophy: We are long term investors
Our Core Beliefs
Sustainable competitive advantages are essential to making successful investments
Agency risk is real – We seek out companies with strong corporate stewardship and look to avoid investing in companies with weak accounting standards and misaligned incentives
Companies must balance the needs of all stakeholders to maximize returns
Price is what you pay for an investment, value is what you get
Intrinsic value as the present value of future cash flows
Patience is paramount – Wait for the fat pitch!
Style boxes are a distraction from the goal – buy great companies at a significant discount to their intrinsic value
Quality balance sheets provide a company with the necessary optionality to make it through bumps in the road
Diversification is beneficial to a point, but over-diversification is dilutive to successful outcomes
Investment fads come and go but fundamentally sound investing will persevere. As Benjamin Graham said, “In the short run, the market is like a voting machine—tallying up which firms are popular and unpopular. But in the long run, the market is like a weighing machine—assessing the substance of a company”
We buy stocks as a portion of a business, not as a ticker symbol
It is extremely difficult to find rewarding investment opportunities so investing with a long term perspective and avoiding trading too often is most beneficial to investors over time
True value is rarely obvious – a contrarian approach is required to find unique opportunities
