Your Investments’ Journey at Parsec

As a Parsec client, you might wonder how we choose and monitor the investments in your portfolio. Because we value transparency, we would like to shed some light on how we make these decisions and give you some insight into investment management at Parsec.

When it comes to our investment management philosophy, fundamental analysis is at the forefront of our process. Indicators such as price-to-earnings ratios, dividend yield and payout ratios, and profitability ratios provide vital information that help us make an informed decision. We include a variety of companies from the 11 S&P sectors, which divide the broad market into groupings such as energy, health care, technology, and so forth. Within each sector, we look for companies that are somewhat different from one another in order to increase diversification. Diversification provides a benefit to your portfolio, as it has been shown to enhance return while limiting risk. The reason for this is that the stocks of different companies (and different sectors) don’t move in tandem, so negative movement in one area of the market can be cushioned by positive movement in another area of the market. It is important to maintain exposure to different areas of the market simultaneously in order to mitigate volatility.

We do not rely on any one source of information, but instead gather data from a wide variety of resources in an attempt to gain a well-rounded view of a security. We consider expected and historical industry trends as well as economic projections as part of our holistic investment decision-making process. We consult outside research from a variety of highly reputable providers, including FactSet, CFRA, Credit Suisse, Argus, and Value Line. Once selected, we continue to monitor these securities regularly, yet are very careful about making sudden changes. This is because our investment philosophy embraces a long-term approach, one that avoids the temptation of acting emotionally. The market has shown that sometimes one of the best investment decisions you can make is to do nothing.

For more, read our related article, “Equity Portfolio Construction – The Method To The Madness.

Also, listen to a recent webinar where we discuss more about our investment management philosophy:

Our research committee (which reports to the investment policy committee) meets regularly to review the research and discuss portfolio composition. We carefully consider a multitude of both positive and negative attributes for each security and engage in discussions where numerous points of view are considered. In addition, when we discuss making a change we carefully consider the ramifications. A key focus is placed on portfolio stability as well as composition and diversification.

Following the research committee meeting, the entire investment team (including portfolio managers, research analysts and our trader) meets to recap the research and discuss any changes that they may make in clients’ portfolios.

Watch us describe our portfolio management process:

As you can see, we strive to continually craft and refine our investment management approach that will enable you to reach your financial goals. We are your steadfast partner in this endeavor. Thank you for your continued trust in Parsec.

Edmund Clapham, CFA
Senior Research Analyst


Recent Posts:

Correlation Between Income Taxes and Medicare Premiums

When the time has arrived where a conversation includes both taxes and Medicare, often there are more exciting items to plan for such as visiting family, traveling, golfing, or diving into a life-long hobby you’ve always been interested in. Although those other interests often take precedence, it is important to understand the correlation between income taxes and Medicare premiums as there are a few planning considerations related to the Medicare Income-Related Monthly Adjustment Amount (“IRMAA”). IRMAA is an additional surcharge for Medicare that is payable based on your income level.

Recent Quarterly Newsletters:

Thrive By Ensuring Your Loved Ones Are OK Edition

Our Q3 2022 newsletter focuses on how to thrive by ensuring your loved ones are OK. In it, we have created an eight-page fillable guide you can create for loved ones to follow after you pass. We also provide other guidance on estate planning, caring for aging parents and preparing for a potential disability.

Thrive by Learning and Growing Edition

Read our Q2 2022 newsletter on how to thrive by learning and growing. CEO Rick Manske reflects on graduation season and what this time of achievement and change means for students and loved ones. CIO Bill Hansen writes about education savings; President Harli Palme writes about tax savings related to college expenses; Portfolio Manager Nancy Blackman cautions about hidden costs of college. Advisor Charles Thompson outlines why it’s important that we value and prioritize travel. Advisors Judd Meinhart and Hilary Daniel write about job transitions and what to do with your 401(k) and new benefits. Advisor Neal Nolan ends with 10 ways to celebrate Independence Day and we highlight announcements across our firm. We hope you enjoy this edition!

Recent Whitepapers:

Stay Up To Date With Parsec

Sign up to join our mailing list and receive quarterly newsletters, whitepapers, news, and more right in your inbox.
Scroll to Top

Not a Client But want to receive updates?

Please sign up to join our mailing list and receive our latest news, thought leadership content and invitations to upcoming webinars.