Rosenau/Paul Group
Overview
Mission Statement: to LISTEN to each client carefully, to CONSIDER their objectives and risk parameters, and to DELIVER on their goals.
The Rosenau/Paul Group works with clients from the outset to establish appropriate asset allocation that meets their needs and goals. We are committed to executing customized investment solutions. Decisions are based on a client's risk tolerance, time horizon, income requirements, tax status, estate planning goals, and other individual factors. The general aim of all portfolios is to deliver market outperformance with lower than average volatility and strong downside protection.
Aside from our "core" equity strategy, we also have "core plus" strategy, which may be suitable for clients who have a higher risk tolerance. While there is a degree of overlap between the securities held in the "core" and "core plus" portfolios, the "core plus" strategy aims to take advantage of shorter term trading and tactical opportunities. Therefore, these portfolios also tend to have higher turnover, which means that they may be less tax-advantaged.
On the fixed income side, we use a passive laddered strategy. We look to minimize credit and interest rate risk, and seek relative value across all sectors. Within tax-free investments, we focus on pre-refunded bonds, and prefer essential services. Within taxable investments, we focus on investment grade corporates, US Treasuries, and FDIC guaranteed bank debt.
Aside from being the group’s Chief Investment Officer and Senior Portfolio Manager respectively, both Ms. Rosenau and Mr. Paul are also co-investors alongside clients in several of the recommended investments. To ensure that we are making the best investments for our clients, we adhere to a rigorous investment process. We have direct access to equity research analysts and strategists at bulge bracket investment banks, boutique firms, and other specialty shops. We employ a combination of a top-down, macro driven process with bottom up fundamental valuation work. The team's dedicated research analyst is solely devoted to monitoring existing and potential positions. Evaluating risk/reward is a vital part of our investments, which is why we look at a variety of metrics including P/E, EV/EBITDA, analyst sentiment, and dividend yields.
We do not run index-based portfolios, so we can establish distinct overweight and underweight positions in the sectors we deem most or least attractive. Our equity portfolios tend to be large cap, with a mix between growth and value. One of the areas we are most focused on today for its "total return" potential is the Master Limited Partnership (MLP) space. MLP's are dedicated to building out domestic energy infrastructure. They are structured for stable, secure, visible, and growing cash flows, and offer a tax deferred yield. We consider MLPs to be an emerging asset class, with the potential to follow a similar growth trajectory to REITs a couple of decades ago.