Customized Portfolio Management

With each client, YHB develops a diversified portfolio that is individually tailored to help achieve established financial goals.

Client relationships begin with a complete review of each client’s current situation and goals. We help our clients establish clear priorities and realistic investment objectives through a detailed discussion of the client’s expectations, risk tolerance, income needs and special requirements. We then design an investment policy that creates an efficient combination of risks and expected returns. This information, documented as the “Investment Policy Guidelines” for each client, becomes the blueprint for all subsequent investing decisions.


Our Investment Philosophy

At YHB Investment Advisors, we believe that well-constructed portfolios designed to meet clients’ investment objectives are the best way to achieve long-term financial goals. Our investment philosophy encompasses the following principles:

Asset Allocation:
After appropriate targets or ranges are established, the exact mix of assets at any point in time is based on our views of the current relative attractiveness of each asset class.

Portfolio Management:
Our customized portfolios consist primarily of individual stocks and bonds, or related funds, which are carefully researched and selected through a rigorous analytical process.

A diverse portfolio with attractive securities that complement each other is a key tool to enhance portfolio returns while also managing and reducing risk.

Long-term Approach:
We pursue a longer-term, buy and hold investment discipline. We are substantially fully-invested at most times. While we reject the concept of market timing, we do recognize that the fear/greed cycle is a powerful, emotional force that creates opportunities for investors.

Expense Management:
We recognize the benefits of the power of compounding with the historically attractive returns in the capital markets. We manage portfolios in an efficient manner to minimize taxes and transaction costs.

Years of Longevity
Assets Under Management

Equity Investment Strategy

YHB Investment Advisors favors the ownership of stocks of high quality companies with a history of strong earnings growth and a corporate management with demonstrated success in adding to shareholder value.  Our decisions are based on sound judgment from significant individual and collective experience.  Our selection process incorporates the following factors:

We incorporate independent quantitative and qualitative research, viewing them as complementary elements in investment decisions.

Equity Style:
We seek to purchase shares of companies at an attractive price/earnings-to-growth ratio.  This approach is often referred to as “growth at a reasonable price.”  Patience and a willingness to ignore the day-to-day fluctuations of the market most often result in the growth of principal over time.

Analysis Process:
We look for growth in revenues, free cash flow, and earnings, as well as high returns on capital.  We compare our conclusions to those implied by the stock’s valuation to make a judgment as to its appreciation potential.

Specialty Funds:
In certain situations we employ no-load mutual funds and/or exchanged traded funds to supplement our holdings of individual equities.  They offer a low cost approach to achieve immediate diversification and access to a variety of investment strategies including exposure to small cap companies, international, or certain specialty sectors of the market (e.g., health care, commodities, biotechnology, etc.).


Fixed Income Strategy

YHB Investment Advisors manages fixed income investments with the objectives of creating stable portfolios, dependable cash flows, and predictable rates of return with relatively limited levels of risk. For these reasons, bonds can play a vital role in almost all portfolios.

Our fixed income strategy focuses on the use of individual bonds tailored to meet each client’s portfolio needs. In acquiring individual bonds, we emphasize:

  • Quality investment grade vehicles
  • Good value
  • Generous yields
  • Minimized credit and interest rate risk

Individual Bonds vs. Bond Funds:
We prefer individual bonds over bond funds. Bond funds do not provide with certainty many of the features of an individual bond such as a fixed coupon rate, maturity date, maturity value and yield to maturity.

Maturity and Duration:
We prefer purchases of high-quality, investment grade bonds with short to medium (1-12 year) maturities. We do not believe investors are adequately compensated for the added risk assumed by holding longer maturities. The predominant use of short and intermediate term bonds, “laddered” to mature over a period of several years, minimizes the impact of interest rate volatility.

Bond Types and Process:
We manage both taxable and tax-exempt bonds as warranted by client circumstances (including tax bracket) and yield spreads. We have access to a substantial inventory of bonds through our custodians and trusted relationships with a variety of fixed income brokers. This allows us to buy bonds at “wholesale” prices and more attractive returns.