Gunn Capital Management LLC

Investment Strategy

Value Stocks:

QUALITY. GROWTH. DIVIDENDS.
We believe the most secure, long-term asset growth can be captured through value investing. We identify high-quality companies that we consider undervalued and buy them at a large discount to realize asset growth over time. We base our analysis of each company on a structured, discounted cash flow model.
We aspire to create a relationship of absolute transparency and accountability with each client.  Unlike retirement portfolios managed by most large investment companies, there are no hidden commissions or 12B-1 fees, which mutual fund shareholders pay to market the fund to new investors. These fees have zero transparency. They are debited directly out of the mutual fund and are not disclosed on a client’s portfolio statement.
As registered investment advisers, we have a legal fiduciary duty to put client interests ahead of our own. Fees must be competitive and investments must be within a client's long-term interest.
The established, secure companies we seek for client portfolios sell products and innovate within developed markets and use the generated cash flow to expand overseas into emerging markets with higher growth rates and more favorable tax environments. It is this combination of security and growth that drives long-term value for our clients.
Companies with strong cash flow generate excess profits, which return cash to shareholders via dividends and share repurchases. At Gunn Capital, depending on the profile and investment goals of the individual client, we either use the dividends to reinvest and grow portfolios or as cash flow to fund retirement. Over time, dividends account for over half of the total return received from investing in stocks and play an integral role in funding retirement income.

Proprietary Research:

LONG-TERM OUTLOOK. OWNERSHIP PERSPECTIVE.
We assume a true ownership perspective with our proprietary investment research for each company we buy or sell. We construct our portfolios from the bottom up, one company at a time. Our value investment strategy drives us to seek a long-term outlook on a company’s growth. In this sense we see the world very differently than most investors. We regularly evaluate the companies we hold, and may decide to sell if the valuation rises to our estimate of what we consider the company’s intrinsic value, if the strategic direction of the company changes, or change within the company alters its growth profile.
Conversely, most retirement portfolios and the advisers who manage them rely on sell-side analysts who work for large brokerage houses that establish extremely short-term price targets for stocks that make up a mutual fund—typically six to twelve months. The one-year turnover rate for most large mutual funds that make up a client’s portfolio regularly exceeds 100 percent. This means that every single stock within the mutual fund is sold within that time frame, generating expensive commissions with every trade and extremely short-term capital gains taxes that are passed on to the mutual fund shareholders. This trade-focused investment strategy is both costly to and hidden from shareholders.

Security:

We work with Custodian Altruist to create personalized, secure retirement plans for each client. Forget wading through mounds of paperwork and hours of your valuable time. Altruist creates a better client experience through an all-digital onboarding process and an intuitive app that allows for simple transfers between your investment account and your bank account. Unlike many custodians, the company also allows fractional trading, which creates better outcomes for clients.
Our investment advisers develop an individually-tailored income model for a client’s retirement based on alternate sources of income available and the desired level of retirement income. We create a retirement budget, and then work backward to determine what portfolio value will be needed to support the client’s retirement goals.
Limiting the number of clients allows us to provide this level of service for each account. When firms are allowed to get large, all clients either get the same distribution of investments, or they get lumped into a “style” basket (aggressive, conservative, income, etc.) based on a one-time intake survey and generic assessment of retirement goals.