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
April 01, 2014
Back to Value After a False Start with GrowthNorthlake’s Style model shifted from growth to value for April. As a result, client positions in the Russell 1000 Growth index (IWF) have been sold with proceeds reinvested in the Russell 1000 Value index (IWD). There is no change in the recommendation from the Market Cap model which continues to recommend mid cap. Client positions in the S&P 400 Mid Cap index will be held for at least another month. The shift back to value...
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March 03, 2014
Liberty in LimboLiberty Media (LMCA) reported earnings last week. As usual, the numbers were meaningless as LMCA is a collection of assets including a majority stake in Sirius XM (SIRI) and meaningful minority stakes in Live Nation (LYV), Charter Communications (CHTR), and Barnes and Noble (BKS). Each of these companies had already reported their latest earnings leaving little fresh information for LMCA to disclose. LMCA is trying to buy the 47% of SIRI they do not own....
Style Model Shifts to GrowthNorthlake’s Style model is now recommending Growth. As a result, client positions in the Russell 1000 Value (IWD) have been sold and proceeds reinvested in the Russell 1000 Growth (IWF). The Value signal had been in place since January 1st. During this time, IWD returned about 35 basis points vs. 171 basis points for IWF, so the latest call by the Style model was a little below average. There was no change in the Mid...
February 18, 2014
Comcast Purchase of Time Warner Looks GoodComcast’s (CMCSK) pending purchase of Time Warner Cable (TWC) improves upon an already positive story for CMCSK shares. Assuming approval effective 1/1/2015, analysts are estimating 5-10% accretion in free cash flow per share vs. Comcast continuing as a standalone entity. Accretion emanates from synergies in operating expenses and capital expenditures, estimated by management at $1.5 billion and $400 million once fully implemented over a 2 year period. Analysts are being a little more conservative in...
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February 17, 2014
Liberty Global Growth Set to AccelerateLiberty Global (LBTYK) reported its slowest quarterly growth of 2013 in the December quarter, with low single digit gains in revenue and operating income. The numbers were not a surprise as a difficult competitive environment in the UK and Netherlands and initial dis-synergies form the acquisition of Virgin Media in the UK held back results. With synergies at Virgin Media starting to kick in, Netherlands beginning to stabilize, and German, Belgium and Switzerland continuing to...
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