Investment Philosophy

RE: Sources of Returns

At Mozella Asset Management, all of our portfolios are thoughtfully designed and constructed to provide multiple potential sources of investment return—with a primary focus on long-term growth.

We maintain a steadfast direction when navigating the stock market. If we effectively analyze and value companies, we trust that our efforts will be rewarded—though it may take time. This principle is essential: no investment strategy, no matter how sound, performs flawlessly at all times.

Our priority is to remain disciplined and adhere to our strategy, even during periods of short-term volatility. By managing downside risk, we believe the upside will take care of itself.

In addition, we occasionally target mispriced assets across public equities, bonds, and alternative markets. These opportunities often arise from short-term market fluctuations driven by emotional, herd-mentality investing. We monitor for overreactions to exaggerated news headlines, which frequently create pricing inefficiencies we can exploit for our clients’ benefit.

Each portfolio is tailored to meet the unique personal and business needs of the client, based on the strategies outlined above. We also provide guidance and access to alternative investments, including real estate partnerships, private REITs, and note funds secured primarily by real estate. These recommendations are made with careful consideration of each client’s investment preferences, capabilities, and financial objectives.

In these cases, we act as fiduciary advisors, prioritizing capital preservation and suitability. We also advise clients on equity positions in private, unlisted businesses, ensuring appropriate risk disclosures and thorough analysis. Alternative assets may be held through self-directed IRA custodians.

Most client portfolios are generally allocated among 8 to 12 core holdings, typically consisting of liquid, large-cap North American companies, a selection of bonds or preferred securities, and short-term or marketable instruments.

Our investment managers focus on high-quality businesses with limited downside risk and stable, recurring cash flow. In certain cases, we seek to capitalize on changes in management, operations, or governance that may enhance long-term shareholder value.

Risk is managed through careful portfolio construction and selective investment. Typically, we engage in only one to three new core investments per year. Hedging strategies may also be employed to reduce market-related downside risk or to capture asymmetric profit opportunities.

We take a tactical approach, adjusting portfolios in anticipation of asset class trends and sector rotation. All asset classes are available to our clients, depending on what best suits their individual financial goals.

Investment Classes Include:
Stocks, Fixed Income, REITs, Private REITs, Direct Participation Programs (DPPs), Municipal Bonds, Government Agency Bonds, U.S. Treasuries, Commodities, Private Debt, Public Credit, ETFs, and more.

While we maintain a disciplined investment selection process, we are always on the lookout for new opportunities.