Jon Davidson

Principal AM has divided their investment management operations into several unique boutiques. The equities boutiques render advice primarily for equity securities. They utilize internally generated fundamental research that focuses on bottom-up stock selection within a sophisticated comparative framework. The fixed income boutique renders advice primarily for debt securities. Their currency boutiques render advice for active and passive currency. Applying a fundamental-discretionary, macroeconomic theme-based investment approach to portfolio management, the strategies include absolute return as well as base currency hedging strategies.

Functions as a College/University

Functions as a College/University

Miles Capital seeks to provide investment strategies that identify and control risk while capitalizing on long-term economic, demographic and cultural trends, as well as fundamental shifts in business practices. The firm provides investment advisory services to their clients through customized portfolios which include: equity securities (exchange-listed securities, ETFs, securities traded over-the-counter, and ADRs); warrants; corporate debt securities; commercial paper; municipal securities; investment company securities (mutual funds shares); US Government securities; and other securities, including convertible bonds, preferred stocks, or alternative assets (private equity hedge funds, real estate, and commodities). Miles Capital evaluates holdings through their own fundamental research, a proven valuation model and access to outside resources. Miles Capital’s equity strategies are based on their belief that buying high quality stocks, trading at a reasonable valuation, at the right moment in time is the key to generating long-term excess returns. The firm manages five equity strategies: Large-Cap Core, Dividend Advantage, Small-Cap Core, International, and REITs. Miles Capital's investment process begins with identifying the appropriate universe of securities that will be filtered and used to construct the model portfolio. They then identify the target risk and portfolio metrics for each strategy, based on research and the characteristics of each unique selection set. The goal is to minimize unintended risks and limit downside volatility. Their security selection process is a bottom-up oriented, two-step process that focuses on identifying securities with the characteristics they believe are necessary to deliver economic value. The first step is a quantitative screening process. The securities are ranked to efficiently narrow the universe of securities to a group with consistent earnings and profitability characteristics and strong liquidity, while maintaining diversification across market capitalizations, sectors, and subsectors. The second step is a qualitative analysis. Fundamental analysis is conducted on an organized group of stocks that already exhibit attractive characteristics. The ultimate goal of their selection process is to build a diversified portfolio of stocks that have attractive asymmetric return profiles strong upside potential with limited downside risk. Miles Capital manages a variety of fixed income strategies, including: Core Fixed Income, Intermediate Core, Intermediate High Quality, Tax Advantaged Bond and Customized target Duration (Insurance and Sector Specific). Their investment process begins with a top-down analysis of the global and domestic trends that influence the US dollar denominated fixed income market. The process then defines a desired level of interest rate risk, yield curve positioning, sector rotation and security selection. The selection of specific issues to be included in a portfolio is a bottom-up process which identifies the best securities within a sector or industry that already has been identified as attractive through the top-down analysis. These decisions are combined with defined risk parameters to achieve an optimal portfolio.