INVESTMENT PROGRAMS - Fairfield Research offers domestic and international common stock portfolios, balanced (stocks and bonds) investment programs and active fixed income management programs. Fairfield Research is proud of its long-term investment record and overall performance in building portfolio values. Given the firm’s capabilities within both the equity and fixed income markets, customers who prefer to structure their portfolios in a balanced manner can be easily accommodated. Allocation to these sectors can be a constant percentage or discretionary.

MANAGED EQUITY PORTFOLIOS - Managed Equity portfolios are generally diversified in 25-30 different companies, with no industry sector accounting for more than 35% of invested capital. After reviewing a new client’s security holdings, Fairfield Research will make initial sell and purchase recommendations and develop investment guidelines for each account. A portfolio index is also established for the portfolio, based on a composite of market indices for stocks, bonds and cash reserves.

Low-cost stock is also reviewed separately with the client, and an investment strategy is agreed to in advance in order to better monitor investment performance and manage the risk, as well as potential tax consequences, from any high concentrations in individual securities.

Fairfield Research will use dollar-cost averaging to reduce risk in initiating new positions for clients. This approach attempts to take advantage of the significant stock price volatility characteristic of growth stocks. Generally, we will invest up to 5-6% of original capital in any individual stock over a twelve month period.

Tax considerations are always an important factor in our investment strategies. We attempt to minimize taxes by focusing our investments on strong, long-term, growing and stable companies. When evaluating a new investment, we look for companies that operate in robust markets and have significant opportunities to dominate their industries through standards, patents and technological leads. These factors permit us to take a long-term perspective on a stock and to invest early enough to achieve significant long-term appreciation.

FIXED INCOME PORTFOLIOS - Fairfield Research also provides discretionary, active management for fixed income portfolios. Investment guidelines are carefully structured for each individual client to incorporate income and liquidity requirements, tolerances for market risk and credit quality preferences. Published market indices are combined with a comprehensive inflation measure to provide a performance benchmark consistent with the investment objectives of each portfolio. The majority of portfolios utilize only investment-grade securities. All major debt market sectors are used including U.S. Government and agencies, corporate, foreign and mortgage-backed securities. Total return is the key measure which guides the security selection process and the measurement of performance. This discipline allows the portfolio manager to consistently focus on maximizing the liquidation value of a portfolio, perhaps the most important single result for any client. Consequently, no differentiation is made between realized or unrealized gains and losses, or income, whether received or accrued.

CUSTODY ARRANGEMENTS - Fairfield Research clients maintain custody arrangements for their portfolios at a variety of financial institutions, including full-service brokerages, investment banks and commercial banks. We are in a position to recommend to clients custodians that provide competitive commission rates and quality reporting services at negotiated discounts. Fairfield Research has no vested interest in any of these arrangements and receives no additional services or soft-dollar credits other than access to a firm’s investor research. We are also often able to establish negotiated rates with a new client’s existing brokerage firm or custodian, thereby reducing administrative documentation and maintaining existing reports and relationships. Currently, we have strong custody relationships with Charles Schwab in New York and San Francisco, Merrill Lynch in New York, and Deutsche Bank Alex Brown in Baltimore, MD and Greenwich, CT.

If you have any questions about our services, management or would like to know more about Fairfield Research by requesting a brochure, please see our contact information.