Marathon Strategic Advisors employs a hybrid approach
to investing. We invest in both growth and value opportunities,
with an emphasis on value. Our goal is to maximize returns
throughout the market cycle by investing in our "best
ideas." Marathon uses a "top-down bottom-up"
approach to selecting securities. We first define the global
economic outlook, particularly interest rate anticipation,
and then concentrate on investments in specific industries.
Investments are made with a long-term orientation, generally
involving the purchase of securities held for at least a
year. This results in relatively low portfolio turnover
that minimizes the tax consequences for investors. We avoid
high-flying stocks that sell for a premium to their relative
fundamental value. Additionally, we do not attempt to time
the market. Thus, portfolios are fully invested, and typically
contain 20-35 issues. Value is seen in both relative and
absolute terms. Therefore, securities appearing overpriced
relative to their intrinsic value and other investment opportunities
are sold. The following investment strategies are utilized
by Marathon in the management of equity, fixed income, real
estate, and alternative investments.
Security selections may be influenced by:
- Growth rate/price earnings comparisons
- P/E ratios versus historical and current levels
- Low P/Es relative to the benchmarks, and comparable
- Under-researched companies
- EBITA multiple comparisons
- Macroeconomic factors
Marathon does not have a "magic black box" or
secret "foolproof system" toward selecting individual
investments. We believe the best way to evaluate an investment
opportunity is through intensive research. We research individual
securities using a large variety of informational sources
that may include the following: Marathon's own fundamental
analysis, direct communications with the company's management
team, product research, review of outside analyst research,
and the study of financial publications. Marathon believes
that these sources, combined with our investment experience,
will enable us to position our clients' assets such that
they may benefit from the long-term changes in the markets.
(However, as is the case with all investments, no assurances
can ever be made that this or any such an investment strategy
When constructing portfolios, our strategy is to employ
modern portfolio theory and asset allocation techniques
designed to help accomplish the client’s goals. Also,
our strategy is to offer the best service possible on a
cost efficient basis.
The asset allocation of an investment portfolio determines
the risk level and ultimately the investment return. Thus,
the allocation of a portfolio should be based on the investor’s
goals and objectives. Marathon develops portfolios that
help our clients achieve the returns necessary to accomplish
their goals while presenting risk expectations that are
understood and acceptable.
Marathon will assess your unique tolerances for risk,
return objectives, needs, and personal financial situation
to help you determine the optimal portfolio that meets your
long-term investment goals. Our goal is to structure your
portfolio so that you receive the best (optimal) return
for the amount of risk you choose to assume.
Diversification Among Multiple Asset Classes
We believe that asset allocation is the most reliable risk
control for portfolios.
All client portfolios should be invested in multiple asset
classes in order to achieve the best investment returns
for a given level of risk.
Asset Allocation accounts for 91%
Source: Brinson, Gary
P. et al. “Determinants of Portfolio Performance,”
Financial Analysts Journal, July/August 1986. Updated in
Financial Analysts Journal, May/June 1991.