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
July 28, 2014
Earnings Updates: Apple, Google, and QualcommThis quarter I am trying a different approach that hopefully saves clients time and increases readership of the quarterly earnings updates. I will write short paragraphs on several companies at a time as they report highlighting a few key items in the reports and looking ahead to future potential of each stock. Earnings season is off to a mixed start for Northlake Capital Management. Google (GOOG) had a good report highlighted by improved revenue growth....
Continue reading "Earnings Updates: Apple, Google, and Qualcomm" (register for full access)
Posted by Steve Birenberg at 10:57 AM in
July 01, 2014
Mid Cap and Value Remain in FavorThere are no changes to Northlake’s Market Cap and Style models for July. The favored themes remain Mid Cap and Value for at least another month. Given the strength of the current signals, I think that Mid Cap and Value probably will last at least two more months but given volatile economic data and 2014’s sharp thematic market rotations anything is possible. With no changes for July, Northlake client positions invested with the models will...
Continue reading "Mid Cap and Value Remain in Favor" (register for full access)
June 02, 2014
Another Month for Mid Cap and ValueThere are no changes to the recommendations of Northlake’s models for June. The Market Cap model continues to recommend mid cap and the Style model still favors value. As a result of the latest signals, Northlake client investments in the S&P 400 Mid Cap (MDY) and the Russell 1000 Value (IWD) will be held for at least another month. There was little underlying movement in the models. The only individual factor to changes was a...
Continue reading "Another Month for Mid Cap and Value" (register for full access)
May 28, 2014
A Bubble in Stock SplitsSeveral companies held in Northlake client portfolio recently announced stock splits. Discovery Communications (DISCK) and Liberty Media (LMCA) announced stock splits that will become effective over the summer. Apple (AAPL) also announced a split effective in early June. These announcements follow Google issuing new non-voting shares as a 2 for 1 split. As a reminder, what used to trade as GOOG is now GOOGL and new non-voting GOOG shares were distributed to create a 2...
May 16, 2014
CBS Healthy Despite Share TurbulenceCBS Corporation (CBS) reported slightly better than expected March quarter results. It was not enough to turn the recently negative sentiment in the shares, however. The day after the report CBS closed down a little over 2% after falling nearing 5%. Year-to-date CBS is down 11% despite good earnings, positive news on capital allocation, and a confident management outlook. I think the stock is caught up in two negative trends. First, consumer discretionary stocks, including...
Continue reading "CBS Healthy Despite Share Turbulence" (register for full access)
Evanston, IL 60201 | 847-226-9713 | email@example.com