The Firm is not a broker/dealer; we do not utilize mutual funds as a part of our investment approach, and all client accounts are maintained in individually invested portfolios of securities. We are also not in a position to act as custodian for client funds, and this function is commonly assumed by a client’s bank or broker/dealer.
Our investment efforts center around three different portfolio constructs:
Comprised of cash reserves, income generating and equity securities,
balanced portfolios can be designed to serve a wide variety of client risk
tolerances and investment needs by balancing diversification and asset
allocation to maximize total return. To the extent a client’s objectives
require the generation of current income and/or an element of protection
against deflation, a component of fixed income securities will be overlaid
on a core equity position. Given client objectives, we develop equity selections
for each client from a single list of securities, ranging from pre-eminent
growth stocks, to those of less developed entities, which seek to complete
new product development and successfully market exciting new products and
services. Growth equities of interest to PCM, as described more fully below,
span a range of industries and include Electronics, Telecommunications,
Software Development, Healthcare and Life Science Services.
The primary objective of PCM’s equity selection is to achieve returns in excess of the Standard & Poors 500 index by investing in " Growth " stocks. Such companies, regardless of size, are generally chosen from industries that are growing faster than the domestic economy. Within those industries, PCM looks for companies whose financial characteristics include high return on investment as well as growth in sales, profits, cash flows and where possible dividends, that are above those of their respective industry competitors. Prices paid for stocks selected are based on valuation multiples that are below expected long term company growth rates. Growth prospects are assessed on a three to five year time horizon. Portfolio holdings generally number between 20 and 30 names.
While there are other factors that influence the PCM stock selection,
these are the most important ones.
3)YES (Young Enterprise Shares) Portfolios
Young Enterprise Shares (YES) is a specialized equity management
service of Princeton Capital Management, Inc. (PCM). A Young Enterprise
Shares portfolio, as managed by PCM, typically invests in the equity securities
of publicly traded companies that are on the leading edge of commercial
applications of science and technology. Broadly defined, they are companies
in the life sciences (including biotechnology and health services) and
the information sciences (including computer software and communications
services). The investment objective of the program is the attainment of
superior long-term returns. Shares will be selected largely from
these young scientifically based companies and will be targeted early enough
in their corporate life so that they will still be reasonably valued. Characteristically,
though, these types of stocks can be quite volatile. Included among the
largest YES holdings are: Aspect Telecommunications, Celgene Corp. and
Limited partnership opportunities are being considered. Among them are YES shares, closed end mutual funds, and a fixed income partnership emphasizing capital gains in addition to current income.
For more detailed information on any of these investment programs please contact:
Princeton Capital Management
47 Hulfish Street
Princeton, NJ 08542
All contents Copyright © 1999 Princeton Capital Management
E-mail: [email protected]