Specializing in the Construction of Equity Portfolios for Long-Term Investors
About Us
Sawyer Investment Management Company (SIMCO) is a Texas-registered Investment Adviser with its principal place of business in Dallas, Texas. It was formed on January 1, 2015 and is wholly owned by Ryan Sawyer, who is a CFA Charterholder and a Certified Public Accountant.
SIMCO specializes in the construction of equity portfolios, and is therefore an ideal resource for long-term investors. The firm goes through a rigorous process for selecting each and every holding in the portfolio. Rooted in the empirical research of academia, the portfolios are generally composed of stocks which exhibit value, momentum, and quality characteristics.
Value
Value is the phenomenon where securities which appear "cheap" (i.e., value securities) tend to outperform securities which appear "expensive" (i.e., growth securities), on average. The existence of the value premium is a well-established empirical fact and is evident in 90+ years of US equity data, 40 other countries, more than a dozen other asset classes, and even dating back to the Victorian age in England.1
Momentum
Momentum is the phenomenon where securities which have performed well relative to peers (i.e., past winners) tend to outperform securities which have performed relatively poorly (i.e., past losers). The existence of the momentum premium is a well-established empirical fact and is evident in 200+ years of US equity data, 40 other countries, more than a dozen other asset classes, and even dating back to the Victorian age in England.2
Value + Momentum
Combining value and momentum factors produces a phenomenon where the significant negative correlations between the returns of the two strategies produces significant diversification benefits and therefore increased risk-adjusted returns than had the strategies been used individually. This phenomenon is a well-established empirical fact and is evident in 40+ years of data from several developed countries and major asset classes.3
Quality
Quality is the phenomenon where securities which appear to be safe, profitable, growing, and well managed (i.e., quality securities) tend to outperform securities which appear to be unsafe, unprofitable, stagnant and poorly managed (i.e., junk securities), on average. The existence of the quality premium is a well-established empirical fact and is evident in 60+ years of US equity data and 26 other countries.4
Ryan Sawyer, CFA, CPA
Ryan has managed the equity portfolios of others since 2013. He holds CPA, Series 65, and Series 79 licenses, and he is a CFA Charterholder.
Affiliations:
Texas Society of Certified Public Accountants
CFA Society of Dallas-Fort Worth
American Institute of Certified Public Accountants
CFA Institute
2 Asness, Cliff S. and Frazzini, Andrea and Israel, Ronen and Moskowitz, Tobias J., Fact, Fiction and Momentum Investing (May 9, 2014). Journal of Portfolio Management, Fall 2014 (40th Anniversary Issue); Fama-Miller Working Paper. Available at SSRN: https://ssrn.com/abstract=2435323 or http://dx.doi.org/10.2139/ssrn.2435323
3 Asness, Cliff S. and Moskowitz, Tobias J. and Pedersen, Lasse Heje, Value and Momentum Everywhere (June 1, 2012). Chicago Booth Research Paper No. 12-53; Fama-Miller Working Paper. Available at SSRN: https://ssrn.com/abstract=2174501 or http://dx.doi.org/10.2139/ssrn.2174501
4 Asness, Cliff S. and Frazzini, Andrea and Pedersen, Lasse Heje, Quality Minus Junk (June 5, 2017). Available at SSRN: https://ssrn.com/abstract=2312432 or http://dx.doi.org/10.2139/ssrn.2312432