Institutional Investors

Separately Managed Account Solutions

Boyar’s All Cap Strategy

This strategy invests in companies that we believe are selling significantly below our estimate of intrinsic or private market value regardless of a company’s market capitalization.¹

Boyar’s High Quality Equity Dividend Strategy

Today’s low interest rates are highly problematic for savers. Investors have sought strategies to address how they can attain adequate yield and keep pace with inflation while minimizing risk. To meet these challenges, Boyar Asset Management offers clients a customized portfolio consisting of what we refer to as “bond-like equities.” These are stocks that we believe are intrinsically undervalued, pay generous dividends, have low payout ratios relative to their earnings, and have the capability of significantly increasing their dividends over time.

By purchasing shares in high-quality dividend-paying companies instead of investing in certain fixed income instruments, our clients can potentially capture a generous dividend yield with an opportunity for substantial capital appreciation.²

Boyar’s Micro-Cap Equity Strategy

We believe that some of the best potential investments can be found among the smallest publicly traded companies. In fact, Boyar’s Intrinsic Value Research, an affiliated entity of Boyar Asset Management, launched a research service in 2010 designed to uncover intrinsically undervalued micro-cap companies. Because Wall Street largely ignores such micro-cap stocks, we’re able to provide our clients with a well-researched approach for this overlooked segment of the market.³

To receive more information on becoming a Boyar Asset Management client, please click here.

¹ Investing in the stock market involves risk, including the possible loss of principal.

² Dividend payments are not guaranteed to occur. Investing in the stock market involves risk, including the possible loss of principal.

³ Investing in micro-cap companies is more risky and more volatile than investing in large companies. Investing in the stock market involves risk, including the possible loss of principal.

Investment Approach

Unlike traditional value investors known for investing in stodgy businesses with limited growth prospects, we consider ourselves opportunistic investors. We search for companies that are currently out of favor on Wall Street and are subsequently selling below our estimate of their intrinsic or private market value.

We also focus on finding catalysts that could make a company’s stock price ascend in value within a reasonable period of time. Since we estimate the intrinsic value of every company prior to its inclusion in a client’s portfolio, our sell decision is made the same day as our stock purchase. When a stock rises above our estimate of intrinsic value, we reexamine all assumptions. If nothing material has changed with the company, we will typically sell the security.

We constantly examine our portfolios and research new market opportunities. Our horizon is long-term, and we are willing to hold a high-cash position when we are unable to find intriguing investments. Therefore, we often use market turbulence to initiate or increase positions.

Portfolio Management Process/Idea Generation Process

Unlike traditional value investors known for investing in stodgy businesses with limited growth prospects, we consider ourselves opportunistic investors. We search for companies that are currently out of favor on Wall Street and are subsequently selling below our estimate of their intrinsic or private market value.

We also focus on finding catalysts that could make a company’s stock price ascend in value within a reasonable period of time. Since we estimate the intrinsic value of every company prior to its inclusion in a client’s portfolio, our sell decision is made the same day as our stock purchase. When a stock rises above our estimate of intrinsic value, we reexamine all assumptions. If nothing material has changed with the company, we will typically sell the security.

We constantly examine our portfolios and research new market opportunities. Our horizon is long-term, and we are willing to hold a high-cash position when we are unable to find intriguing investments. Therefore, we often use market turbulence to initiate or increase positions.

Portfolio Management Process/Idea Generation Process

Portfolio Construction

Modern Portfolio Theory

Our opinion on how to construct a portfolio is quite different from those held by most money managers. Every portfolio we create is tailored to fit a client’s unique needs and risk tolerance. Our portfolios typically concentrate only on our best 20-40 ideas, and we do not match our sector weightings to correspond with the major indices. In addition, due to the long-term nature of our investment philosophy, we have historically generated tax-efficient results for our clients.

The Number of Companies in a Portfolio

We have significantly more confidence in our highest conviction ideas than we do in our sixtieth-best investment idea. Thus, we are strong believers in a concentrated portfolio with a large percentage of the portfolio consisting of our top 10 investment ideas. Our performance may not correlate well to the major indices, but over time our approach, we believe, will lead to superior investment results.

Sector Weighting

We believe that if our clients wanted to mimic the major indices, they would invest in an index fund. Clients come to Boyar Asset Management because we act on our best ideas. This approach typically results in our portfolios looking very different in terms of sector weightings than the major indices. One outcome of this contrarian style is “lumpy” results that seldom match any of the stock indexes used as benchmarks for other investing styles.

This approach can be frustrating in exuberant bull markets. However, we believe well-researched portfolios of undervalued businesses lead to superior long-term capital appreciation potential and reduced risk in flat or declining markets.

Tax Efficiency

Boyar Asset Management is extraordinarily tax sensitive for taxable accounts. After all it is not what you make; it’s what you keep – Taxes are potentially the biggest expense an investor will experience.

• By holding stocks for long periods of time, you postpone paying taxes, which we believe positively impacts long-term returns.
• Buying and holding stocks for long periods may sound stodgy, but it postpones the payment of capital gains taxes with the added positive effects on the compounding rate. Since profit taking involves transactions, it obliges you to take the IRS in as a partner. With profits not taken, there is a future tax liability, but all the money is still working for its owner. No transactions, no tax.
• Boyar Asset Management believes that holding well-researched undervalued stocks for long periods of time is the best way for an investor to create wealth.