Lawrence Capital Management

Lawrence Capital Management is a small, private organization committed solely to managing the assets for a limited number of clients. An independent firm, ownership is held exclusively by management.

  • Firm was founded in 1991 by management with a twenty-year history of helping families manage their financial and fiduciary-related affairs
  • Manages private fortunes for a very select clientele
  • Provides investment counsel and coordinates fiduciary services
  • Specializes in medium to large capitalization, high quality growth stocks
  • Emphasizes extensive analysis based on original research


Your interest in
Lawrence Capital
Management is much
appreciated.


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Mission

Our mission is to preserve each client's standard of living and enhance their wealth.

  • Represent our clients and their families as a private family office
  • Enhance their wealth after taxes and inflation over a long time horizon
  • Coordinate fiduciary services to address intergenerational family issues


Our clients are
assured their affairs
are being tended to,
and the lifestyle to
which they and their
families have become
accustomed will
remain intact.

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Private Family Office

There are certain unique benefits to a private family office, such as relationship continuity, peace of mind, trust developed over time through highly personal attention, discretion, and a single resource for all financial, fiduciary and administrative needs.

  • Act as an adjunct in the financial and estate planning process
  • Coordinate the establishment of trusts and foundations
  • Individual trusteeship / executorship
  • Overseer of accounting, tax and legal issues
  • Integration with financial needs and objectives
  • Individual asset management based on each client's objectives


What can we provide
that you don't have
today?

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Case Examples

Here are four existing client scenarios to illustrate how our Firm can effectively assume the role of a private family office, And more importantly, how it can provide peace of mind.

  • We sat down with Mr. and Mrs. Jones to identify their needs and objectives and, in turn, deleveraged their balance sheet, reassigned their corporate trustee on a testamentary trust to a local bank, and reworked an insurance policy to solve a potential liquidity problem (precluding the need to take on further debt).

  • We helped Mrs. Green by integrating her estate planning with that of the rest of her family while she underwent treatment for a cancerous condition. The empathy and gentleness of this relationship in the later stages of this disease helps define our experience and emotional interaction with our clientele.

  • A prospect, Mrs. Jackson called on Lawrence Capital to discuss her dilemma.
    She was working with her broker who was unresponsive to her inquiries, discussing her private matters in public, and often unavailable for quarterly or semi-annual reviews. She has since become a client and complimented us on our high level of personal service.

  • We have worked closely with Mr. and Mrs. White, who both have children by
    previous marriages. Lawrence Capital Management is coordinating their estate planning and its implicit intergenerational financial planning to help meet each family's unique financial and estate planning objectives.


  • Most of our relationships extend beyond simply managing a client's money. They involve personal interaction, which leads to a better understanding of overall needs, concerns and goals. We tend to assume the role of trusted adviser, coordinating and managing others such as attorneys and accountants.



Perhaps this is
something we can
offer you that you
don't have today…

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Investment Management

We are registered with the SEC under the Investment Advisors Act of 1940. The firm neither acts as a broker, nor a custodian of securities.

  • A growth orientation directs us toward sustaining and enhancing after-tax purchasing power
  • A rigorous process that stresses fundamental analysis
  • Economic and market forecasting that drive asset allocation process
  • Continuous adjustment of risk exposure to protect capital
  • Depending on the client, we offer equity, balanced and fixed income portfolios

Since our sole source
of revenue is clients'
fees, our interests
and those of our
clients are identical:
preserve capital and
achieve a superior
rate of return.

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Investment Philosophy

We have an "earnings growth bias" toward generating superior investment returns. However, we may utilize yield, total return or even special situation investing as an adjunct depending on client objectives and the investment climate. Also, we closely scrutinize valuation parameters before making an investment.

  • Outperform in rising markets; preserve capital in falling markets
  • Consistently outperform inflation over time
  • Superior growth potential of medium to large capitalization quality common
    stocks

Earnings growth
acceleration drives
stock prices.

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Investment Strategy

We adhere to a research-driven strategy combining top down and bottom up analyses. We first determine the broad direction of the economy, and then attempt to identify attractive investments within the context of the prevailing market environment.

    • Study macroeconomic indicators affecting corporate and investment
      decision making
    • Monitor outlook for corporate earnings, interest rate movements and inflationary expectations

  • Economic, geopolitical and industry trends form the basis of our overview
  • Fundamental analysis to determine accurate valuations
  • Identify inefficiently priced securities with above-average return potential

Our top down
analysis helps us
clarify the world in
which we pursue a
bottom up search for
investments.

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Investment Process

Our investment process is client centered and hence, flexible. It begins with understanding a client's needs in terms of lifestyle funding and financial objectives.

    • Identify needs » set objectives
    • Create mandates (investment plan) including liquidity, ROI (current income/capital appreciation), risk tolerance, time horizon, and fiduciary considerations such as tax or legal constraints

  • Dynamic asset allocation
  • Actively manage with a continuous critical review of investments made
  • Monitor changes in client needs
  • Frequent reviews with each client (at least quarterly)


We strive to
consistently meet a
client's objectives,
and to update these
objectives in
response to lifestyle
changes.

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Investment Analysis

Our disciplined investment strategy entails a thorough analysis of industry and company fundamentals.

  • Economic, political, demographic, industry, liquidity and accounting trends drive our investment selection, with specific emphasis on:

    • Global economic expansion / contractions
    • Dollar strength / weakness
    • Competition
    • Inflation / disinflation / deflation
    • Deleveraging after leveraging
    • Substitution of capital for labor
    • Consumer vs. capital goods cycle
    • Demographic shifts and changes in purchasing behavior
    • Tax law changes
    • Privatization of foreign industry
    • Fair vs. free markets
    • Small, medium and large capitalization relative performance


We stress the
importance of
looking at both sides
of an investment -
similar to a balance
sheet- to see if you
end up with a
positive or negative
net worth.

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Managing Risk

We have incorporated certain risk monitoring "tools" into our investment approach.

  • Measure risk of the portfolio as a whole, not simply individual portfolio positions

  • Economic conditions are monitored through the assessment of both fiscal and
    monetary policy

  • Current stock market valuations such as price / earnings ratios, dividend yields and price-to-book ratios are continuously compared with historical data

  • Investor sentiment is actively monitored through prevalent consensus opinion studies

  • A valuation model based on historical relationship between interest rates and
    price / earnings ratio is constantly scrutinized



Lawrence Capital
Management has a
deep conviction that
managing risk is not
only paramount to
preserving capital,
but also a key
determinant to
superior long-term
returns.

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Sell Discipline


The decision to sell is driven by changes in the potential risks and/or rewards attributed to each investment.

  • We will normally average out of our original tax cost position when a stock appreciates first 33% and then 100%

  • Fundamentals eventually deteriorate, creating changes that drive a sell decision

  • We reassess a position whenever it reaches its price objective

  • We will also reassess a position that is down 10%

  • We will normally sell an entire position that depreciates by 15 - 20%


As a long-term
investor, we try to
avoid over-
managing our
clients' accounts.
Rather, we prefer to
leave portfolio
positions undisturbed
so long as our
investment strategy
remains intact and
valuations are
reasonable.

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Fees

To offer each client individual service and still retain a strong investment focus, Lawrence Capital Management places certain constraints on both the size and number of accounts it is willing to undertake.  New accounts are limited to those with assets in excess of $500,000.  Our annual fee is calculated on the quarterly market value of the portfolio and is billed quarterly in advance. A schedule of fees is posted in our ADV.

 

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WHY LAWRENCE CAPITAL MANAGEMENT
      • experience
      • relationship continuity
      • centralized administration
      • goal oriented
      • disciplined investment approach

Lawrence Capital Management, Inc. is in business to work with you, our client, on initially identifying and then meeting your immediate investment needs while maintaining the objectivity and foresight to balance these short term objectives with longer term goals:


INVESTMENT PHILOSOPHY

Lawrence Capital Management's investment objective is to attain the client's objectives whether that be total return, current yield or solely capital appreciation throughout various business cycles. At the same time, exposure to risk is to be continually adjusted so as to preserve the clients' capital.

The firm believes that such risk-adjusted returns can be obtained through a disciplined investment strategy which combines a dynamic asset allocation process with active portfolio management focused on the identification of inefficiently priced securities with above average return potential and below average risk.

STRATEGIC IMPLEMENTATION

Lawrence Capital Management thus utilizes a "top down" approach, as well as "bottoms up" approach, in implementing investment objectives. We first attempt to determine the broad direction of the economy and then attempt to identify investments that appear particularly attractive within the context of the prevailing market environment. This disciplined investment strategy involves an exhaustive study of macroeconomic "indicators" as well as a thorough analysis of industry and company specific "fundamentals".

Economic, political, demographic, global and accounting trends drive the investment process. We are acutely aware of the dynamics of the securities markets which anticipate the impact of these changing trends. In turn, we aim to maintain the highest degree of flexibility in order to profit from these changes.

Lawrence Capital Management does have an earnings growth bias. However, we may utilize yield oriented investing, total return investing, or asset based company investing as an adjunct depending on client objectives and the investment climate.

We are interested in providing you, your family and your business with the quality investment advice you need and deserve in this rapidly changing world. We would be happy to make a presentation of our service and how it should interact with your overall financial objectives. Please contact us for additional information.

 

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