Investment Strategies

Grand Street Capital Management L.L.C.’s mid cap value strategy invests in domestic equity securities with market capitalizations between $2 billion and $18 billion.  Our professionals employ a Value Style approach to investment management. Our process begins with a bottom-up research strategy that evaluates securities according to their micro economic characteristics and ends with a current assessment of macro-economic elements and qualitative factors. Variables such as cash flow, book value, and price to earnings ratio help us determine the security’s intrinsic value or what we think is it’s true value.  This value is then compared to a security’s current market price and a decision is made to buy, sell, or hold the security.  We believe that solid research is fundamental to sound security selection.  Over time, we have discovered that well-run companies with talented management teams tend to outperform their peers.

Our asset allocation strategies are customized and designed to address the various needs of our investors. After an initial consultation and the completion of our proprietary Risk Assessment Test, clients are considered for one of five risk categories:  I. Aggressive, II. Moderately Aggressive, III. Moderate, IV. Moderately Conservative, V. Conservative.  Within these categories, our investment professionals adjust the client’s asset allocation to fit their specific investment needs.  We accomplish this by investing in various mutual funds, exchange traded funds, and money market funds that have been researched and selected by our professionals.  Additionally, we can utilize risk mitigation strategies such as hedge funds, options, and commodities to reduce overall portfolio risk where necessary. We employ a ‘Best of Breed” strategy when selecting funds meaning that we are not aligned with any particular family of funds or investment company. This way, our clients can be assured that we are seeking the best funds that we believe will give us the best opportunity to grow their assets.

All of our strategies are developed in house by our investment professionals.  When discussing their investments, our clients can be assured that they will deal directly with the creators of the strategy.