PORTFOLIO CONSTRUCTION & RISK CONTROL METHODOLOGY
After the research process has been completed and the various aspects of the company 3-legged stool have been deemed satisfactory, the Firm usually takes approximate positions of 1.5-3.0% in any particular equity.
SGL Investment Advisors attempts to have S&P 500 sector representation as a risk control methodology. Under normal circumstances, any sector over or under-weight is typically incremental in nature, although SGL Investment Advisors will vacate or significantly over-weight a sector if the Firm sees what it considers to be a compelling reason to do so. As well as actively and continually monitoring sector exposure on the portfolio level, the Firm also continually monitors other potential risk factors such as international equity exposure, REIT exposure, potential liquidity issues, etc.
SGLIA portfolios typically hold between 30 and 40 equity securities and about 25-30 fixed income positions.