Investment Management

Logix is unique among equity managers focused on dividend yield. The strategy utilizes historical absolute and relative yield thresholds by industry as a means to evaluate the potential for capital appreciation. The benefit to the portfolio is attractive industry entry points and a relatively high level of current income.

Logix employs a disciplined strategy of buying dividend-yielding industries when the price of those industries is at or near the bottom of its cycle, based on historical absolute and relative dividend data. Logix employs a disciplined strategy of selling appreciated industries when the price of those industries is towards, but not at the top of its cycle (approaching Logix measure of fair value), based on historical absolute and relative dividend data.

Proprietary Model

  • Historical Absolute and Relative Dividend Yield Valuation
  • Fundamental overlay
  • Buy/Sell Based on High and Low Yield Thresholds Set by Industry
  • Industry and Equity Diversification

Typical Portfolio

  • Focus on large and mid-capitalization companies
  • Yields meaningfully exceeding Russell 1000 Value and S&P 500
  • 5-9 industries, 25-45 equities across sectors
  • At cost, no more than 20% in one industry, and no more than 5% in one equity

Historical Results

  • 20+ year, GIPS verified track record
  • Outperformance vs. Russell 1000 Value benchmark and S&P 500
  • Low Beta and Volatility vs. Russell 1000 Value and S&P 500
  • Tax Efficient: Historically Low Annualized Portfolio Turn

GIPS Verification and Compliant Presentation

The Process

Identify Attractive Industries

  • The proprietary process begins by screening all listed U.S. equities for companies with a 10-year history of uncut dividends, balance sheet sustainability, cash flow generation, and fundamental soundness.
  • Typically, approximately 500+ names emerge for the next stage of analysis.
  • The screened buy candidates are then classified into proprietary industry groups based on business lines and revenue sources.
  • Once the industry groups are defined, there must be a minimum of three candidates within an industry for that industry (and the underlying names) to be included in the next analysis stage.
  • The newly formed industry’s composite dividend yield must compare favorably to its absolute and relative buy yield/price threshold to be considered for portfolio inclusion.
  • Companies within buy industries are further evaluated based on yield valuation and fundamental quality.

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