Edgemoor Investment Advisors

HIGHLIGHTS OF OUR INVESTMENT APPROACH

At Edgemoor Investment Advisors, Inc., we provide highly personalized service beginning with a thorough understanding of each client's investment objectives and financial position.  After this comprehensive review, we help our client make asset allocation decisions and then develop an appropriate portfolio, typically including equities and income-generating investments.  Once established, portfolios are subject to regular review to ensure they continue to serve our clients' needs.

ASSET ALLOCATION
The first step in developing an investment portfolio is to choose the appropriate asset allocation, the percentage of funds that are held in equities and the percentage held in income investments.  Asset allocation is a fundamental decision in investing and affects both the total return that a portfolio is likely to achieve and the volatility of the portfolio.  At Edgemoor Investment Advisors, we work closely with each client to develop and implement a tailored asset allocation strategy based upon the client's specific situation and investment goals.  After establishing a portfolio, we regularly rebalance the holdings to maintain the appropriate allocation.

EQUITIES
Edgemoor Investment Advisors employs a value-oriented approach to equity selection that seeks to maximize returns while reducing the risk in each portfolio.  We typically invest the equity portion of each client's portfolio in a diversified group of 30-35 U.S. and international stocks.  We analyze the fundamentals of stocks and buy those that are trading below their intrinsic value, an approach that has outperformed the market over the long term.  More specifically, we seek to identify companies exhibiting some or all of the following criteria:

Typically, we hold stocks for many years to minimize taxes and transaction costs.  Our approach to equity selection and long-term focus further the goals of capital preservation and capital appreciation.

INCOME
Our income universe is not limited to government and corporate bonds but also includes utilities, REITs, and other high dividend stocks; preferred stocks; master limited partnerships; income trusts; and senior corporate notes.  As with equities, our objective is to produce returns that exceed market benchmarks over the long term while minimizing risk.  By analyzing individual securities within our broad income universe to identify the best values, we believe we can deliver positive returns in nearly any interest rate and market environment.  The selection of income-generating investments varies depending upon the specific circumstances of each client, including his or her risk tolerance, age, desire for income and investment time horizon.

INDEPENDENT ADVICE
In establishing and managing investment portfolios, we provide impartial analysis and unbiased investment counsel.  We do not act as a broker or dealer, and we receive no commissions on transactions.  Our compensation comes solely from fees based on the value of the assets under our management.  This fee structure aligns our interests with our clients', avoids conflicts inherent in other advisory relationships, and allows us to focus on increasing the value of our clients' portfolios.