Naylor & Company Core CompositeSM includes all
fee-paying and non-fee paying portfolios managed to a strategy of finding growth at a good price. Naylor & Company Investments, LLC (“Naylor & Company”) uses a quality, focused portfolio of stocks seeking to generate returns above those of the overall U.S. stock market over a market cycle. Naylor & Company analyzes the fundamentals of companies (ranging in size from micro-cap to large cap) to find investments with excellent long-term earnings growth prospects, but with stock prices that, in our opinion, are good relative to their expected earnings growth rates. Naylor & Company also invests in selected turnaround and cyclical companies. In April 2013, Naylor & Company began investing in certain warrants. Investments in warrants have not and will not exceed 10% of portfolio values. Portfolios within the composite are concentrated, holding approximately
30-50 securities, so returns may have a lower correlation with the overall stock market, and may exhibit higher volatility than the overall stock market. The benchmark presented is the Russell 3000® Index, which represents 98% of the investable U.S. equity market and is shown as a market indicator, for comparative purposes only. The minimum account size for this composite is $20,000. The Composite was created December 2013.
In presentations shown prior to 12/31/2018, the Russell 3000® Index was shown. The benchmark was changed retroactively due to benchmark provider restrictions and has been replaced with a readily known comparison.
Naylor & Company claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented
this report in compliance with the GIPS standards. Naylor & Company has been independently verified for the periods
April 10, 2003 to December 31, 2017.
Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards
on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance
with the GIPS standards. The Core Composite has been examined for the periods April 10, 2003 to December 31, 2017. The verification and performance examination reports are available upon request.
Naylor & Company is a state-registered, independent registered investment advisor (“RIA”). The firm’s list of composite descriptions is available upon request.
Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Composite performance is presented net of foreign withholding taxes on dividends, interest income, and capital gains. Past performance is not indicative of future results.
The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income. Net of fee performance was calculated using actual management fees. The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.
The investment management fee for the composite is 2.00%. Actual investment advisory fees incurred by clients may vary, and are negotiable.
Performance information for Naylor & Company's Core Composite Annual Presentation is on the preceding page.