Investment Approach

The objective of Lynch Asset Management is to generate superior, long-term investment returns with controlled risk exposure by creating portfolios of diversified, high quality assets.  Portfolios are structured with three asset classes:  equities, fixed income, and cash equivalents based on the client’s objectives, risk preference, and evaluation of current macroeconomic and financial market trends.

Equity Style – The objective of Lynch Asset Management is to identify great companies at attractive valuations.  Our strategy focuses on companies with strong competitive positions, solid management, excellent balance sheets, consistent earnings growth and the potential to grow their revenues with new products and markets.  Companies that exhibit these qualities have sustainable businesses that make them attractive long – term investments.  This fundamental, company-focused research is the essence of our approach to investing.

Our focus on valuation mitigates potential downside risk while increasing the potential return.    However, we will sell a stock if there is a deterioration in the long–term fundamental, management loses credibility or the investment thesis is not longer valid.  In assessing each company, we examine measures of both absolute and relative valuation.  We are, however, disciplined in terms of what price to pay for these companies.

Fixed Income Style – Lynch Asset Management believes that preservation of capital, current income and liquidity, are important objectives in the management of fixed income portfolios.  Proper positioning along the yield curve as a result of economic analysis, interest rate forecasts, and credit analysis are essential components in our fixed income management.  Our firm focuses on the short and intermediate portion of the yield curve where investors are able to capture the majority of the market’s returns with significantly less price volatility.  Our security selection is centered on creating a diversified portfolio of high quality bonds rated “A” or better by Moody’s and / or Standard & Poor’s.  The objective of our fixed–income portfolios is to generate current income, preserve capital, dampen the volatility of other asset classes, and to provide liquidity in case of need.