About Thompson :: Investment Philosophy

 

Investment Philosophy
We invest in a pool of companies that have exhibited long-term growth in earnings per share and attractive returns on equity capital.

Investment Approach
We utilize an investment philosophy that has the preservation of our clients' principal as the cornerstone, and the delivery of competitive investment returns as our goal.

Equity Investment Philosophy
Our investment philosophy is based on the fundamental premise that long-term out-performance can be achieved by opportunistically buying quality growth companies when the market misperceives their long-term growth outlook and underlying value.

Fixed Income Investment Philosophy
Our fixed income strategy is centered upon four central beliefs:

• First, within a customer’s portfolio, bonds should be used to reduce the risk of loss of principal that arises in higher risk asset classes, such as equities.
• Second, if a higher risk level is desired or deemed appropriate for a client, our preference is to allocate a larger percentage of their portfolio to the higher returning asset classes, such as equities, not to significantly increase the risk level in the fixed income portion of the portfolio. 
• Third, fixed income managers with substantial experience in the equity markets can better assess the credit worthiness of corporate issuers.
• Fourth, experienced managers can actively manage credit risk and interest rate risk.