Providence Capital Advisors manages four investment strategies utilizing individual securities: Core Equity, Covered Call, Diversified Income, and Fixed Income. We also manage a portfolio of exchange-traded funds that provides broad diversification. In some circumstances, alternative investments may be added to the overall allocation.
Allocations to each of these strategies is customized for each client and tailored to their specific needs. The investment strategies are structured to be complimentary in nature, which provides a high level of diversification and allows us to construct overall investment allocations ranging from growth-focused to conservative and income-focused.
Many new clients have concentrated positions or portfolios with large unrealized gains. We have the flexibility to manage portfolio transitions over time, mindful of tax consequences.
The Core Equity Portfolio provides the growth engine of a balanced portfolio.
We focus on identifying companies with secular or cyclical tailwinds that help propel growth within an industry. We concentrate on industry-leading companies that use competitive advantages to capitalize on these tailwinds and drive above-market growth.
Disciplined valuation is a critical component to security selection in order to avoid overpaying for future growth.
The Covered Call Portfolio uses call options to increase the income and decrease the volatility of a stock portfolio.
The strategy is executed by buying a stock and simultaneously selling a call option on that stock.
Covered call portfolios typically go up less than the stock market in positive markets and go down less than the stock market during negative markets, which results in lower volatility.
Income from this strategy can have a low correlation with other income strategies, providing diversification to income sources for an overall portfolio.
The Diversified Income Portfolio is a multi-asset class combination of income-producing securities.
The portfolio includes high dividend paying stocks, real estate investment trusts, preferred stocks, and fixed income.
We believe this hybrid, diversified approach provides an optimal balance between a dependable income stream and risk management.
Fixed Income provides the foundation of a balanced portfolio, and therefore we focus exclusively on high quality bonds with low default risk.
Taxable bond portfolios are constructed primarily with investment grade corporate bonds.
Tax-free bond portfolios are constructed using high quality municipal bonds taking into account the state in which the client resides.
Our Equity ETF portfolio provides diversification across large cap, mid cap, small cap, developed international, and emerging markets. We tactically change allocations to these areas based on valuations, growth potential, and risk management.
We also add additional ETFs to the portfolio to gain exposure to specific investment themes or geographies.
In some circumstances, clients that meet fund net worth minimums and have limited liquidity needs may have exposure to alternative investments.
Areas of potential investment may include hedge funds, infrastructure, private real estate, private equity, and private credit.