What We Do

We believe that the most prevalent threats to accumulated wealth are mismanagement and unnecessary exposure to risk.

Our objective is to preserve and enhance the wealth of an intentionally limited number of private clients through the prudent application of established investing principles, sound reasoning, and the identification of value opportunities in the markets.

How We Do It

For over a decade, Castleton has safely navigated our clients’ portfolios through several financial crises and the most perilous period seen in over a generation.

We have done so through a disciplined, consistent and repeatable process.


Approach

The most effective and reliable strategy for designing a successful portfolio—and preserving wealth—is in controlling credit risk and maintaining liquidity.

Through comprehensive, bottom-up analysis, we utilize an investment approach that focuses on sector and security selection to minimize clients’ risk exposure.

We focus our efforts on this portion of the portfolio construction process because it can best be controlled, while enabling us to minimize the most volatile area of risk: interest rate exposure.

Ongoing analysis results in an informed and evolving perspective of which sectors afford the greatest measure of safety and value.


Process

After developing a thorough understanding of a client’s goals and needs, we determine the appropriate risk tolerance, maturity preferences, and income requirements.

We then identify and execute upon market inefficiencies to construct a customized, diversified, tax- and cost-efficient portfolio that evolves over time, within client-specified parameters.


Strategies

Investment Grade Fixed Income StrategyThe primary investment objective of this strategy is to attain an income-focused rate of return with a prudent level of risk, achievable from a portfolio of publicly traded securities. These securities include, but are not limited to, fixed income securities, exchanged traded funds, preferred stock, and mutual funds. Clients may select from three styles.

Capital Preservation: This goal focuses on minimizing portfolio risk and providing a safe and reliable income stream. Liquidity and credit is considered more strongly than income.

Stable Income: This goal focuses on principal protection but also aims to improve or stabilize income with liquid and diversified instruments. These securities may be of some credit or maturity risk.

Income Opportunity: This goal aims to accept a level of calculated risk to satisfy income. This investment style may include holdings that could be more speculative in terms of credit, maturity, or liquidity.

Impact Investing Strategy: This strategy focuses on investments that provide measurable and positive social or environmental impact. This priority can—and often, does—co-exist with other investment goals. Beyond enhanced credit selection, an Impact portfolio undergoes rigorous, independent, third-party pre-investment screening coupled with post-investment analytics.

Special Strategies: These strategies seek to capitalize on opportunities in distressed and other securities that we believe to be undervalued by the marketplace. These opportunities seek potential capital gains, as well as income. The risks of any particular Special Strategy may not be suitable for all clients.


How We Differ

As an income focused manager, bonds play a central role in all client portfolios. Our institutional capability in the asset class is rare—especially in a multi family office setting. We execute all fixed-income trades in the inter-dealer (wholesale) market with no additional markup to clients. Because investors typically purchase bonds from a broker-dealer, they are charged a markup or commission, reflected in a higher purchase price. Our execution represents a source of substantial savings.

Castleton portfolios are designed for safety and liquidity, which is essential to capture market opportunities. Owning many different credits, in the name of diversification, will often compromise the ability to liquidate in a cost efficient fashion. In fixed income allocations, we focus on the marketability of blocks of bonds to enhance liquidity.

Our strategies are based on logic and value, not index-oriented guidelines. Bonds should not necessarily be held to maturity, as bonds are called, credit quality changes, and crisis can occur. We emphasize active risk management.

We are independently owned and operated without affiliation to any bank or broker-dealer. Whereas bonds are typically offered to investors from a broker-dealer’s inventory, we are unencumbered by similar conflicts of interest that are common to large institutions.