Investment Strategies

Pettee Investors believes that the most important factors in making recommendations or structuring a portfolio are the expressed investment objectives of the client. Pettee Investors does not believe, however, that investment objectives should be expressed in simple terms such as attempting to achieve maximum growth or maximum safety of capital. There is a wide range of risk-reward ratios between these two extremes, and each client should, with the help of Pettee Investors, attempt to choose an appropriate objective.

Pettee Investors, Inc. has three investment strategies:

  1. Large capitalization equities

  2. Medium sized companies

  3. Equity REITs or Real Estate Investment Trusts

The strategy of Pettee Investors for the large and medium capitalization equity products is to primarily invest in U.S. growth companies that we believe to be of high quality and undervalued in the marketplace based on valuation metrics. Pettee Investors focuses on changes that are occurring within a company that will cause earnings growth to continue or accelerate over time.

Client portfolios are broadly diversified over many industry groups and individual securities. Investment decisions typically have a long term time horizon so portfolio turnover is relatively low.  Pettee Investors does not attempt to market time short term fluctuations in the market or economic conditions by frequent changes between equity holdings and cash.

 

The REIT strategy is designed to offer clients commercial real estate exposure by primarily investing in a portfolio of publicly traded U.S. equity REITs.  Based on the client’s investment objectives, risk tolerance and time horizons, among other considerations, this strategy may use the following investment objectives:

  • Growth objective

    • Investments will typically include real estate firms that are more levered to economic growth with higher total return potential.

  • Balanced Objective

    • ​Investments will typically include a balanced blend of companies that, based on past trends, could be expected to perform roughly in-line with broad real estate market indexes from a risk and return standpoint.

  • Income Objective

    • Investments will typically include real estate firms that pay higher dividends and should have a more stable and predictable outlook that could be less impacted by economic conditions.

 

More information on our REIT strategy and REIT research is included with Hoya Capital Real Estate LLC, our affiliate. Click here for more information.

 

All investment ideas are generated from a multitude of sources including meetings with company management, conference calls, company reports, brokerage firms, trade journals and business publications. Pettee Investors believes that fundamental analysis is the most important factor in selecting securities, however, “technical” or “chart” analysis is also considered.

Pettee Investors, Inc.

137 Rowayton Avenue, Suite 430

Rowayton, CT 06853

Sheila Pettee, CFA

sppettee@petteeinvestors.com

(203) 957-8880

Alex Pettee, CFA

alex.pettee@hoyacapital.com

(914) 602-6004

© 2020 Pettee Investors, Inc. All Rights Reserved.

Client Relationship Summary