Northlake Capital Management, LLC is a registered investment advisor offering investment advisory services to high net worth individuals and their affiliated entities. Northlake specializes in the management of equity portfolios using a "Core and Explore" strategy. "Core and Explore" combines a small portfolio of exchange traded index funds (ETFs) with a select basket of individual stocks.
Most of the ETFs are selected using a monthly model that rotates funds among small, mid, and large capitalization stocks and growth and value stocks. Back tests of these models show superior returns since 1980. Successful investments for real clients have been achieved since early 2004. Northlake recently an International theme to its ETF rotation strategy via investment in ETFs which track stock markets in five different regions of the world. more...
What We Do
I've spent my entire 24 year investment management career in a long-only environment serving mostly high-net-worth individual investors and their related retirement and charitable accounts. During the 1980s and the first half of the 1990s, I had a lot of success as measured by my ability to produce a return in excess of the S&P 500 on an annual basis. This is still my goal, whether in up or down markets. Until the second half of the 1990s, I felt I had an edge because of good analysis and my ability to get to sources of information that weren't widely available to individual investors. This was true of all professional investors and, as a group, we had a good thing going.
The late 1990s' bull market coincided with the rise of the Internet and other advances in communications technology. More information was available and it flowed faster. Stock prices responded more quickly. The decline in trading costs accelerated and ultimately trading costs collapsed. All this led to increased competition. It became easy to set up new money management firms. Individual investors had inexpensive access to tools formally exclusive to the pros. The bull market fueled demand. What happened was obvious: Long-only money managers faced a new environment where traditional methods of beating the market no longer worked; their edge was gone. more...
"Most stock market analysis is open to subjective, selective manipulations. Therefore, we use only objective indicators and go with the weight of the objective indicator evidence."
-- Ned Davis, Ned Davis Research, Institutional Hotline,
Cycles and Barometers Everywhere, 2/14/05.
NDR provides research support for Northlake Capital Management, LLC
Latest Posts from Media Talk
December 01, 2014
New Models and New Mid Cap SignalNorthlake’s Market Cap model shifted from large cap to mid cap for December. As a result client positions following this model were shifted from the S&P 500 (SPY) to the S&P 400 Mid Cap (MDY). There is no change to the growth signal in the Style model. Client positions in the Russell Growth (IWF), initiated for the first time last month, will be held at least until January. As a reminder, November marked the debut...
Continue reading "New Models and New Mid Cap Signal" (register for full access)
Posted by Steve Birenberg at 01:17 PM in
November 13, 2014
Activision Blizzard: Attractive Play on Video Game CycleActivision Blizzard, Inc. (ATVI) is a new buy for Northlake clients. Now is a good time to invest in ATVI following recently announced better than expected third quarter results. In addition, there have been concerns about growth at ATVI for 2015, but the worries seem to be easing due to the just reported better than expected sales and recent announcements about the pipeline of games in 2015. ATVI is trading at a meaningful discount to...
November 10, 2014
Signs of Bottoming at CBSCBS Corporation (CBS) reported third quarter results in line with or very slightly ahead of recently lowered Wall Street estimates. CBS shares have performed quite poorly this year, down almost 20%, as earnings have steadily fallen due to weaker than expected advertising trends at the CBS Network and the company’s owned and operated TV stations. In addition, investors are worried about a collapse in the TV network business model if TV begins to be delivered...
November 08, 2014
High Expectations and Timing Issues Should Not Hold Back DisneyIn a very tough year for media stocks, Disney (DIS) has been a standout performer. At recent highs, the shares were up over 20% for the year, more than twice the gain in the S&P 500. DIS was a victim of its own success after reporting its latest quarterly earnings. The results were slightly above expectations but not as big a surprise as the last few quarters. The company also reminded investors that higher sports...
Liberty Media Splits in Two to Drive Value CreationThe big news surrounding Liberty Media’s (LMCA/LMCK)) quarterly earnings was the split of LMCA into two companies as shareholders received one share of Liberty Broadband (LBRDA/LBRDK) for every four shares of LMCA/LMCK. LMCA/K now is dominated by its 57.5% ownership stake in Sirius XM Satellite Radio. Sirius now represents over 7% of LMCA/K net asset value. Another 10% is a 35% ownership stake in Live Nation Ticketmaster. Sirius and Live Nation had both reported good...
Evanston, IL 60201 | 847-226-9713 | firstname.lastname@example.org