Portfolio Options: Separately Managed Accounts
Roumell Asset Management has three primary portfolio options: Roumell Equity, Roumell Balanced and Roumell Fixed Income. Roumell Asset Management is first and foremost a value-oriented manager. We have always tended toward smaller and mid-sized companies because they are more likely to be inefficiently priced, and therefore, value investment candidates. However, when market conditions dictate we will also consider large cap opportunities. In short, we seek value first, in whatever market segment that it occurs.
Roumell Equity Accounts
Standard. Standard Equity accounts can have up to 100% of their assets invested in stocks. Historically, these accounts have emphasized common stocks. However, we will also selectively purchase a mixture of high-yield individual bonds and discounted closed-end bond funds if we believe that these securities offer a favorable risk/reward profile. When fully invested, we will typically hold about 35 positions with a target maximum individual security concentration of 5% at initial purchase. In the absence of sufficient investment opportunities, we will hold cash.
Concentrated. Concentrated Equity accounts are managed similarly to Standard Equity accounts except that we hold fewer positions. When fully invested, we will typically hold about 25 positions with a target maximum individual security concentration of 7% at initial purchase. As a result, Concentrated Equity accounts should experience greater volatility than Standard Equity accounts. As with our Standard Equity accounts, we will remain in cash in the absence of compelling investment opportunities albeit to a lesser extent than in Standard Equity accounts.
Roumell Balanced Accounts
Balanced accounts combine stocks, bonds, and cash. Investors can choose between four allocation models: 65% equity and 35% fixed-income and cash is the most common. However, three other models ranging from a low of 30% equity exposure to a high of 75% are also available.
Roumell Fixed Income Accounts
Fixed Income accounts can have up to 100 percent of their assets invested in individual bonds and closed-end bond funds. Fixed Income accounts are designed to generate meaningful current income and experience principal appreciation by buying at a discount to stated par value. Our focus is to identify attractive high yield, non-investment grade, corporate debt, and discounted closed-end bond funds. However, we will invest in other forms of fixed income securities (investment grade corporate debt, sovereign debt, etc.) if the investment opportunity meets our opportunistic deep value emphasis.
Roumell Asset Management has a minimum account value of $500,000.
"Our firm invests, again and again, in companies and securities that we believe are significantly undervalued given relevant merger/acquisition activity, net asset value analyses, going-private transaction activity and reasonable going-concern values. To wit, we study companies and not the stock market." - Roumell Quarterly Report