Taking Our Investment Program to New Heights

Earlier this year, we announced the addition of Joseph Bonacci, CFA, as the firm’s Portfolio Manager. Joseph’s hiring marked a strategic shift in how Sierra Ridge views investments and executes its philosophy. Joseph’s valuation-based approach not only identifies attractively priced investments but also removes the guesswork related to when a security is sold, which is particularly useful for holdings with a significant gain. Being valuation conscience allows us to identify new opportunities, manage the risk of our current holdings and optimize the transition out of winning investments. Ultimately, it allows us to do what we do better—helping clients.?

Sierra Ridge Investment Strategies

How we execute our strategies is just as important as their theoretical underpinnings. Joseph has instituted a multipronged sell discipline across the Sierra Ridge family of strategies, enhancing the firm’s risk management and investment decision-making techniques. Our proprietary blend of limit orders, options, and valuation allows us to identify high-quality investments, acquire them at an attractive price, and exit at the optimal time. Furthermore, a variety of quantitative methods like value at risk (VaR) analysis, enhance the process by informing our decisions regarding the timing and amount of limit orders and option strike prices and contract sizes.

Sierra Ridge Wealth Management offers its unique philosophy to advisors in four formats:

The Sierra Ridge Tactical Management Strategy reflects our valuation conscience approach across the mutual fund, ETF, and individual stock universes: An ideal investment offers growth at a reasonable price. A combination of valuations, bottom-up fundamental analysis, and top-down technical indicators are used to guide buy and sell decisions. The strategy consists of one or more security sleeves, each of which is designed to exhibit differing characteristics. The security sleeves are Opportunistic, Core Equity, and Fixed Income.

The Sierra Ridge Equity-Driven Income Strategy consists of two investor profiles—moderate and conservative—for investors who prefer using equities to generate recurring income. Our goal is to construct a portfolio with an attractive yield for a given risk tolerance. The strategy seeks to purchase high-yielding securities selling at a discount to their intrinsic value. No industry may represent more than 20 percent of total assets. We believe this contributes to a well-diversified portfolio with attractive yield characteristics.

The Sierra Ridge ESG Strategy investments are limited to registered products that explicitly state in their prospectus a pursuit of a sustainability or ESG mandate. This strategy pursues sustainable investing through exclusive criteria to avoid investments in companies directly engaged in or deriving significant revenue from non-ESG industries. Both active and passive vehicles are used to execute the strategy.

The Sierra Ridge Index-Based Solutions Strategy is designed for investors who prefer an index-based solution. Although implementation is executed using ETFs, the strategy is actively managed using our valuations-based approach. ETFs will include both active and passive weighting methodologies. Like our flagship Tactical Management Strategy, an ideal investment offers growth at a reasonable price.

We are passive in our philosophy and active in our execution.

Our emphasis on valuations allows us to be style agnostic. Valuations also give portfolios a greater margin of safety in the short term and above-average return over longer time horizons as assets revert to their long-term mean. We believe that a rules-based valuation process paired with a systematic sell discipline smooths the contours of an investor’s return pattern and creates a unique narrative for our advisors. To learn more about our compelling approach to investing please visit us at www.sierraridgewealth.com or follow us on LinkedIn at @sierra-ridge-wealth-management.?

Securities and investment advisory services offered through NEXT Financial Group, Inc.

Member FINRA/SIPC. Sierra Ridge Wealth Management is not an affiliate of NEXT Financial Group, Inc.