Andrew Boyd, CFA
Gibraltar Capital Management – Assets Under Management $340 Million
AFG Client Since 2006
1.Can you tell us a little about Gibraltar Capital (Who you serve, philosophy)?
We are a full-service wealth management firm that serves high net worth families. Our approach to investing is valuation based, cash flow focused, and driven by our independent research process, a big part of which is done using AFG’s tools.
2. You have been a client of The Applied Finance Group (AFG) for over 11 years, what sets AFG apart from other equity research providers?
AFG is more than a service provider for our firm; they are a partner. Their people, products, and research capabilities have become a foundational part of our investment approach. We utilize their EquityInsights platform and Excel add-ins to facilitate our entire process, from screening for new ideas to building detailed models on companies of interest. We have built a good rapport with their analysts and service team, and we have access to them whenever the need arises. It is a partnership we value.
3. How has incorporating strategies like the High Dividend and AFG 50 helped your firm?
While we don’t build portfolios directly to mirror these strategies, we have found the AFG 50 to be a great source for new investment ideas. This has led to some overlap between the AFG 50 and our clients’ portfolios. Additionally, having access to AFG’s analyst team has been very helpful as we conduct our own due diligence process. It’s not uncommon for us to leverage those relationships to gain valuable insights into a specific company or industry.
4. The AFG50 strategy is in the top 10% vs its core category peers. However, there are points in time that the AFG50 has underperformed, can you explain your approach to using the AFG50 and AFG’s research approach during times of underperformance?
There will be periods when any style underperforms. We believe in the math and data supporting AFG’s Economic Margin framework. We appreciate AFG’s commitment to this approach and remain convinced that it will generate excess returns over the long-term.
5. How does your use of AFG’s research and models help with client communication?
AFG’s modeling and research capabilities give us a high level of confidence in our portfolio holdings. It allows us to better understand and explain our rationale behind buy/sell decisions when asked by clients. We also use the default models to quickly assess securities that are transferred into us or that we are asked about by prospects.
6. Any additional comments about AFG?
AFG has done an excellent job of innovating and improving their product offerings over time, creating a very robust and user friendly platform for equity research. They take great care to provide training on new features and how they might fit into our firm’s overall investment process. Well done.