The R.G. Associates, Inc. Philosophy
R.G. Associates, Inc. - an asset management firm located in Baltimore, Maryland.
Long-Term Value Investing
The R.G. Associates, Inc. strategy pursues capital appreciation through a value-oriented approach to investment in equities of larger-capitalization domestic companies.
R.G. Associates, Inc. screens for investment candidates primarily based on their cash operating returns on assets, while giving consideration to returns on equity, financial leverage and valuation. Intellectually honest accounting is also a key consideration in the investment process, as financial reporting is the most crucial communication between a firm’s management and its shareholders. A key attribute of the Firm’s style of value investing: a long holding period. This puts time on the side of the investor, and helps to minimize portfolio transaction costs.
The R.G. Associates, Inc. Composite Performance portfolio employs a bottom-up strategy to investment. Investments are sought in companies with a demonstrated ability to generate sustainable and high returns on assets and common equity. The holdings are concentrated in a small number of meaningfully-sized positions. The total number of holdings is usually less than twenty. This creates a focus on the best investment ideas, but also may leave accounts exposed to more company-specific and industry-related risk.