Philosophy:

At Hargis Capital Management we emphasize a personal approach with the management of client portfolios. After carefully analyzing each client's investment objectives, tolerance for risk, and tax situation, the Hargis team develops a customized asset-allocation strategy based on projected returns versus the effects of inflation. At Hargis Capital Management we believe that a successful investing program requires the ability to analyze the fundamental strengths of companies, to find those  companies that enjoy a near monopoly in a well-defined marketplace, and to apply technical analysis to optimize the timing of entry into and exit from specific holdings and general markets. Mr. Hargis has been using this investment approach successfully for his clients, as well as for himself, for over 40 years.

Portfolio Structures

We take a personalized investment approach when allocating a client's portfolio, taking into consideration individual goals and risk tolerance, with a concentration on the preservation of capital. Four different portfolio structures have been designed to meet a variety of objectives.

Portfolio A.  For ages 21 through 55.  This portfolio structure is for clients who are still employed and need a portfolio geared toward achieving growth rather than income.

Portfolio B.  For ages 55 through 65.  This is a hybrid of portfolio’s A and I.  Portfolio structure B is an investment program to achieve moderate growth and income.

Portfolio I.  For ages 65 and over.  This portfolio structure is for clients who are primarily in need of income with a small percentage of growth to offset the impact of inflation.

Portfolio M.  Portfolio structure M is a special purpose portfolio for those clients who wish to have a small portion of their total assets allocated for highly speculative trading.  This particular portfolio structure is only available at the request of the client.

In certain situations a hybrid of 2 different portfolio structures will be created in order to better service a client's specific needs.

Investment Process

After thoroughly understanding your individual financial objectives, the Hargis team will design a customized portfolio strategy biased towards quality equity securities and minimal cash holdings. For fixed-income investors, the Hargis team considers bond selections and other conservative investments when the rate of return in the bond market is competitive with returns projected for other asset classes.  

Equities

To select equities for our portfolios, we take a global perspective and a top-down approach, looking first at the macro picture and then identifying industries that are likely to benefit most in the current economic environment.  Once an industry is identified, we take a micro look at companies that we believe are well positioned for future growth and that are trading at attractive levels relative to their intrinsic value and growth rates.

Fixed Income

Our fixed income approach is geared toward providing the client with a steady, predictable, high-yielding stream of cash flows and a return on investment of 5.5 percent to 7.5 percent.  To achieve these goals we use fixed income instruments such as preferred stocks and bonds.  The fixed income allocation mix is selected based on our forecast for the future of the economy, the possibility of inflation, changes in interest rates and how these events will affect bond prices and yields.  In addition, the credit worthiness of the issuer must meet our criteria.

Stock Options

 Options are actively traded by many people, however few possess the knowledge necessary to take full advantage of the ability to hedge a position while at the same time taking in cash for the client (almost like creating a dividend out of thin air). We have developed a disciplined approach that uses a system of writing covered calls and buying puts in order to take in cash payments for a client while at the same time significantly reducing the downside risk of an investment.