Northlake Capital Management, LLC is a registered investment advisor offering investment advisory services to high net worth individuals and their affiliated entities. Northlake specializes in the management of equity portfolios using a "Core and Explore" strategy. "Core and Explore" combines a small portfolio of exchange traded index funds (ETFs) with a select basket of individual stocks.
Most of the ETFs are selected using a monthly model that rotates funds among small, mid, and large capitalization stocks and growth and value stocks. Back tests of these models show superior returns since 1980. Successful investments for real clients have been achieved since early 2004. Northlake recently an International theme to its ETF rotation strategy via investment in ETFs which track stock markets in five different regions of the world. more...
What We Do
I've spent my entire 24 year investment management career in a long-only environment serving mostly high-net-worth individual investors and their related retirement and charitable accounts. During the 1980s and the first half of the 1990s, I had a lot of success as measured by my ability to produce a return in excess of the S&P 500 on an annual basis. This is still my goal, whether in up or down markets. Until the second half of the 1990s, I felt I had an edge because of good analysis and my ability to get to sources of information that weren't widely available to individual investors. This was true of all professional investors and, as a group, we had a good thing going.
The late 1990s' bull market coincided with the rise of the Internet and other advances in communications technology. More information was available and it flowed faster. Stock prices responded more quickly. The decline in trading costs accelerated and ultimately trading costs collapsed. All this led to increased competition. It became easy to set up new money management firms. Individual investors had inexpensive access to tools formally exclusive to the pros. The bull market fueled demand. What happened was obvious: Long-only money managers faced a new environment where traditional methods of beating the market no longer worked; their edge was gone. more...
"Most stock market analysis is open to subjective, selective manipulations. Therefore, we use only objective indicators and go with the weight of the objective indicator evidence."
-- Ned Davis, Ned Davis Research, Institutional Hotline,
Cycles and Barometers Everywhere, 2/14/05.
NDR provides research support for Northlake Capital Management, LLC
Latest Posts from Media Talk
May 15, 2013
Focus on M&A At LibertiesLiberty Media (LMCA) and Liberty Global (LBTYK) reported earnings last week, finishing off the latest quarterly reports for Northlake's portfolio of individual stocks. Both stocks reacted favorably to their results although the real focus of investor attention at both companies is on recent merger and acquisition activity. LMCA recently announced it was taking a 25% stake in Charter Communications (CHTR), one of the largest cable companies in the US. CHTR previously was a successful investment...
May 13, 2013
Media Earnings Look Good Overall and for NorthlakeMedia companies reported earnings over the last two weeks including Northlake positions’ CBS, Discovery Communications (DISCK), and Disney (DIS). In general, the news from Northlake’s holdings and other media companies was good. The two key takeaways are: (1) the national TV ad market is firming up a bit from its tepid growth late last year and early this year, and (2) retransmission and affiliate fees paid by cable, satellite, and telco TV companies continue to...
May 05, 2013
Market Cap Model Volatility Continues with Mid Cap Back in FavorDue primarily to trend and technical indicators, Northlake’s Market Cap model shifted from small cap to mid cap for May. As a result, all client positions following the model previously invested in the Russell 2000 (IWM) have been sold and proceeds reinvested in the S&P 400 Mid Cap (MDY). This change continues an unusually volatile period for Northlake’s models which seem to be struggling with inconsistent data on the economy, abnormally low interest rates, and...
May 02, 2013
CBS Delivers Another Quarter, More Upside Lies AheadCBS reported another excellent quarter, showing solid growth even against tough comparisons and declining ratings at the flagship CBS Network. Revenues grew 6%, slightly ahead of expectations. Excellent cost controls and a positive mix shift led to a 15% gain in adjusted operating cash flow, the most important financial measure for media investors. Extremely aggressive share repurchase activity over the past year accelerated in the first quarter. With shares outstanding down about 5% year over...
Qualcomm Raises Concerns But Story IntactDespite reporting results largely in line with estimates and slightly raising full year guidance, Qualcomm (QCOM) shares traded down sharply following its earnings report. Investors were disappointed with margins, especially looking ahead to next quarter when the company expects them to remain under modest pressure. The margin guidance led to June quarter EPS being forecast slightly below current analyst estimates. For a high growth stock like QCOM, there is no room for error, even when...
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