Investment Philosophy


Diversification Investment Philosophy – Lebed Asset Management

All clients have a core portfolio of individual stocks diversified by sector and market capitalization:

  • Sector diversification ensures that portfolios include a balance of stocks in key areas such as consumer cyclicals, consumer staples, energy, financials, healthcare, industrials and technology.  This balance limits portfolio volatility that could result from excessive sector concentration.
  • Diversification by market capitalization ensures a balance between small, medium and large-sized companies and similarly limits volatility of returns.

Clients’ core portfolios can be augmented to create a fully diversified portfolio, including:

  • additional asset classes such as fixed income, real estate, commodities, currencies and other diversifiers and
  • stock exposure in categories not fully captured by the Sustainable Value strategy, such as emerging markets, international and growth.
  • These complementary holdings generally consist of mutual funds and ETFs, but may also include individual bonds for larger accounts.
  • We emphasize out-of-favor sectors and contrarian managers.