Communities Corner

Connect with Strategists that Align with Your Investment Philosophy

Communities Corner highlights what’s happening within Orion Communities, our robust investment model marketplace. Find out about the newest investment strategists to join Communities, get valuable market insights, plus stay informed of enhancements to Orion Advisor Tech.

  Overview

New Investment Strategists

Meet the latest investment strategists to join Communities. Learn their history, core competencies, investment philosophy, and how they can add value to your model portfolios.

AMC Logo

Small and Mid-Cap Companies Can Present a Wealth of Opportunity

Small and mid-cap investments can be the building blocks of a diversified portfolio. Advisors Capital Management believes a fundamentally driven investment process, focused on identifying companies with differentiated business models and sustainable competitive advantages, will drive outperformance over time.

Identifying small-cap companies with the potential to grow into the mid-cap space, and mid-cap companies with the ability to grow into the large-cap space, allows us the flexibility to hold our positions and capture a longer growth period in a company’s life cycle.

Kayne Logo

Seeking High Conviction, High Quality

Kayne Anderson Rudnick (KAR) focuses on high quality, high conviction investing. KAR defines quality as differentiated businesses with solid economics. In the Small-Mid Cap Growth Portfolio, we seek to own growth businesses with enduring competitive protections and favorable long-term prospects. We own companies that we believe have low business risk as identified by high returns on capital, strong free cash flow, and a low organic need for external financing.

KAR looks to buy these companies at attractive valuations and to build a high conviction investment portfolio limited to 20-35 securities. Our goal is to find the best businesses to mitigate risk rather than owning many businesses to diversify away from risk. We believe a high conviction portfolio, purchased at attractive prices, with strong market positions and little to no debt, tends to experience less market risk than a traditional portfolio with 70-100 securities.

River Road Logo

Discovering Value, Off the Beaten Path

Ideally situated 738 miles from Wall Street, Louisville, Kentucky-based River Road Asset Management is a boutique institutional equity manager founded in April 2005. We offer separate accounts and sub-advised collective investment vehicles that allow us to serve clients around the globe.

At River Road, we are Absolute Value® investors, which is a proprietary approach that we believe is ideally positioned between deep value, relative value, and quality at a reasonable price. The Absolute Value investment philosophy is distinguished by a focus on excellent companies trading at compelling prices, bottom-up portfolio construction, and risk aversion. Additionally, we seek less efficient areas of the market, including smaller cap companies, companies whose shares are temporarily out of favor, and companies that are not yet promoted by Wall Street analysts.

Strategist Spotlight

Each month we shine a spotlight on an investment strategist. There’s no better time to find out what’s new from these strategists.

Capital Group logo

A Long-Term Perspective Can Help You Prevail Through Challenging Times.

History has shown that stock market declines are a natural part of investing. While declines have varied in intensity and frequency, they have been somewhat regular events. It may also reassure you to know that the market has recovered from declines. American Funds is among those proven managers with a long history of success, stemming from our long-term perspective and our emphasis on producing results that are less volatile than the broad market.

Keys to prevailing through stock market declines can help investors remain calm during downturns and avoid common mistakes that could derail their long-term investing plans.

Capital Ideas™ – market and economy investment insights from Capital Group

Strategists to Watch

Keep an eye on new models and the latest offerings from strategists you’ll find on Orion Communities.

Logan Capital Logo

International Investing Can Offer Diversification and Alpha Opportunity at Times Like These!

The dollar strength is consistent with Federal Reserve rate hikes while other central banks are holding firm or reducing rates (as in the case of Japan and China). In the context of the Ukraine war, a flight to safety should perhaps also be expected. So while foreigners have bought lots of dollars (approximately $1.6 trillion net over the last 12 months), they have invested them in US fixed-income securities and were net sellers of US equities. The “Smart Money” was likely turned off by the relatively high forward P/Es of the average US stock. When comparing the forward P/Es of the major global indexes, the US trades at approximately a 45% premium today. This presents a buying opportunity in international stocks seldom seen in our view.

Today, our International ADR portfolio (investing only in developed markets) is trading at about a 10.5 P/E while offering approximately a 5% yield. Long term investors may want to reconsider the allocation levels in their non-US holdings to take advantage of these relatively low prices.

Peregrine Capital Logo

Peregrine’s Large Cap Growth Portfolio is Trading at Valuations Not Seen for 60 years.

The Peregrine Large Cap Growth style invests exclusively in long-duration, high growth stocks that generate a free cash flow growth rate of at least 12% over the long term. Free cash flow growth drives long term returns and provides the best potential for high absolute returns. Long-duration companies have lower operational risk. They have outstanding balance sheets, and world-class future cash flow returns on investment.

The combination of long-duration and high growth provides a significant opportunity for a variant view versus the Street and the potential for excess returns. The underlying objective of the style is to translate the portfolio’s high free cash flow growth into strong absolute and relative returns over time.

New This Month

Portfolio Recipe

Portfolio Recipes, a monthly webinar event, brings together selected investment strategists to create customized model portfolios to satisfy your clients’ unique needs. Join us each month as we introduce you to a fresh pair of strategists, explore the value each brings to the table, and how they can complement each other in your model portfolios.

Portfolio Recipes: The All-Weather Portfolio Recipe

Join Orion’s Chief Investment Strategist, Rusty Vanneman, CFA, CMT, for his monthly Portfolio Recipes webcast. You’ll gain insight about partners, how their firm plays a role on the Orion platform, and how their models can help amplify your expertise. We understand how important it is for you to meet your clients’ investment goals, which is why we’re here to help you put together the right recipe to fit the unique needs of your clients.

The All-Weather Portfolio Recipe


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Save Your Spot for the All-Weather Portfolio Recipe webinar

Orion Portfolio Solutions, LLC a registered investment advisor.

The CFA® is a globally respected, graduate-level investment credential established in 1962 and awarded by CFA Institute — the largest global association of investment professionals. To learn more about the CFA charter, visit www.cfainstitute.org.

The CMT Program demonstrates mastery of a core body of knowledge of investment risk in portfolio management. The Chartered Market Technician® (CMT) designation marks the highest education within the discipline and is the preeminent designation for practitioners of technical analysis worldwide. To learn more about the CMT, visit https://cmtassociation.org/.

New Models on Communities

  • Kayne Anderson Rudnick Investment Management:
    • KAR Small-Mid Cap Core
    • KAR Small-Mid Cap Quality Value
    • KAR Small-Mid Cap Sustainable Growth
  • Neuberger Berman:
    • Neuberger Berman Emerging Markets Equity ADR SMA
    • Neuberger Berman International Equity ADR SMA
  • SkyOak:
    • RAAMPS AlphaDog
    • RAAMPS ETF Rotation
    • RAAMPS Future 50
    • RAAMPS Strong 50
    • RAAMPS Ultra Growth
  • Strategic Financial Services:
    • Strategic Evidence-Based Factor Portfolio – Aggressive
    • Strategic Evidence-Based Factor Portfolio – Balanced
    • Strategic Evidence-Based Factor Portfolio – Conservative
    • Strategic Evidence-Based Factor Portfolio – Growth
    • Strategic Evidence-Based Factor Portfolio – Moderate
  • Logan Capital:
    • Logan Large Cap Growth Equity SMA
  • Morningstar Investment Management:
    • Morningstar ETF Aggressive Growth
    • Morningstar ETF Aggressive Growth Tax Sensitive
    • Morningstar ETF Conservative
    • Morningstar ETF Conservative Tax Sensitive
    • Morningstar ETF Growth
    • Morningstar ETF Growth Tax Sensitive
    • Morningstar ETF Income & Growth
    • Morningstar ETF Income & Growth Tax Sensitive
    • Morningstar ETF Moderate Growth
    • Morningstar ETF Moderate Growth Tax Sensitive
  • Wakefield Asset Management:
    • Wakefield Large Cap Equity

How to Make SMAs Accessible for All

SMAs were invented in the 1970s to accommodate the needs for high net worth individuals, whose investment objectives didn’t fit well into standard mutual fund strategies. But that was then and this is now! Recent history shows that SMAs actually hold more wealth than either ETFs or mutual funds. One study found that they comprised 35% of U.S. equity assets in 2018, while ETFs held 34% and mutual funds came in third at 31% of equity wealth.1 The steady growth that SMAs have shown may be about to get much higher as well. Another study suggests that demand for SMAs may double by 2023.2 Download our ebook to learn more about the benefits and roadblocks to using SMAs and how you can make them more accessible to all your clients. Download

1https://www.bnymellon.com/us/en/what-we-do/business-insights/the-growth-trajectory-of-separately-managed- accounts-continues.jsp 2https://www.tradersmagazine.com/departments/fx/separately-managed-accounts-expected-to-double-in-three-years/

Streamline and Scale Your Investment Management Process

When Kathy Kraft, owner and founder of Kraft Financial, LLC, logged on to an Orion Communities webinar, she thought she was there to learn about how to better market her firm. And in a roundabout way, that’s exactly what happened. Learn how Orion Communities is helping Kathy to grow her business “at least four times over, in the next couple of years.”
Download

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