999 18th Street,
Suite 1401, North Tower,
At Paragon Capital Management, we strive to provide our clients with the best portfolio management services. We act as their personal CFO, taking on the day-to-day trading and fund selections, allowing them to focus on their personal matters. After creating a personalized financial plan, we work with our clients to develop an Investment Policy Statement for their portfolio that aligns with their unique goals and direction. Our approach is not just limited to traditional investment options in the portfolio we directly manage. We also help our clients incorporate their assets that can’t be consolidated, such as in a 401(k) or their real estate holdings.
Our main goal is to protect and preserve our clients' wealth by reducing risk, ensuring stability over the long term, and applying a sensible investing approach. This means that we carefully diversify our clients' portfolios with investments that best match their spending and liabilities.
Our investment approach focuses on building diversified global portfolios using short-term cash equivalents, equities, real estate, bonds, private investments, and alternative asset classes. We diversify across countries, sectors, and quality to ensure portfolios can withstand market cycles. We use both passive indexes and active managers to achieve optimal returns for a given risk level.
This conservative approach aims to minimize losses during market downturns, which enables faster recovery and helps clients stay on track with their long-term goals. Our approach is designed for clients who are building their portfolio during their working years or relying on their portfolio for everyday spending in retirement.
Our Equity management style emphasizes global diversification of investments and investment approaches. We invest using a range of carefully considered approaches that bring combined value to the overall portfolio with the objective of better returns with lower risk. Inflation, taxes, and transaction costs have an important impact on our client’s wealth. We offer considerable expertise on managing equity portfolios tax efficiently to help you keep more of what you make. Finally, we customize and diversify portfolios by considering low cost basis holdings, stock options, and concentrated positions.
Our investment approach for individual stocks balances growth, value, and quality. We seek stocks that will outperform over the long-term by carefully considering the different factors that can affect a stock's long-term performance.
Our fixed income management emphasizes quality, liquidity, and capital preservation strategies. We believe bonds should act as a relatively safe part of the portfolio to provide for cash flow needs in the next five years as well as diversification from the equity part of the portfolio.
We manage bond portfolios customized to each client's individual tax situation. Based on the current market dynamics and the client's marginal tax bracket we decide if each account should be invested in tax-free municipal bonds or taxable bonds (including government bonds, corporate bonds, and mortgage bonds). Our bond portfolios are often concentrated in intermediate-term issues where we are able to capture attractive yields with less portfolio risk. However, we are dynamic to changing market conditions and will adjust if better opportunities present themselves.
Portfolio risk is carefully managed by adding alternative assets classes that are not highly correlated with equity and fixed income investments. Our goal is to provide attractive after-tax returns while reducing the overall level of risk within the portfolio.
We have developed a proprietary value stock strategy that employs behavioral finance principles to remove emotions and biases from the investment process. This strategy utilizes a quantitative stock screening model to identify undervalued US stocks that are currently out of favor rather than those experiencing financial difficulties. By holding these stocks for a minimum of one year, the approach is to allow time for these stocks to regain favor and also benefit from more favorable capital gains tax treatment. This strategy has been found to outperform the stock market and comparable mutual funds historically (and without the added mutual fund fees). We manage the strategy in a separately managed account (SMA), which is incorporated as a component of clients’ overall portfolios. Upon request, we can provide more information and historical composite return data.