PVG offers four strategically managed investment approaches—Aggressive, Moderate, Conservative, and Income—each designed to align with varying risk tolerances, income objectives, and long‑term growth expectations. While the strategies differ in their core allocations, they all share PVG’s disciplined investment philosophy, diversified implementation across asset classes, and the incorporation of risk‑management tools aimed at improving downside protection when appropriate.The PVG Focus 10 strategies are separately managed accounts containing approximately 10 stocks in any particular strategy. Only our very best ideas will go into each of these strategies. PVG follows a large number of securities, and a typical portfolio may contain 40 or 50 stocks, but in our Focus 10 strategies, we will only own the stocks we believe are the best of the best. As PVG is an industry leader in “Loss Averse Investing”, when the market begins to experience negative volatility, we may protect the portfolio from dropping significantly. The benefits of these strategies are the potential for significant performance not typical of a mutual fund or other account managed by a broker or financial advisor. Individuals that attempt to do it themselves may get the joy of dabbling in stocks but likely will be very hard-pressed to perform as well as these PVG strategies. PVG encourages investors to have a long-term time horizon and to expect at times some stocks may not perform as expected.
The PVG Aggressive Strategy is designed for investors seeking higher long‑term growth potential and who can tolerate equity‑like volatility. It typically holds approximately 85%–100% in equities under normal conditions, with the flexibility to reduce equity exposure significantly or raise bond/cash levels in unusual environments. Because equities dominate the allocation, performance generally aligns with the broader stock market. PVG’s risk‑management process—enhanced beginning 1/1/24—aims to capture market upside while limiting downside when warranted. Equity exposure spans all capitalizations and global regions, while bond exposure (up to ~20%) can include diversified government and corporate ETFs. Alternatives may also be included to improve risk‑adjusted returns.
The PVG Moderate Strategy provides a balanced allocation, generally maintaining about 60% equities and 40% bonds, though actual exposures may range significantly in atypical market climates (0–70% equities and 0–100% bonds). This strategy is intended for investors seeking a middle ground between growth potential and risk management. It maintains diversified equity exposure across large‑cap, mid‑cap, small‑cap, and international selections. Bond holdings are also broadly diversified. When traditional bond protection does not materialize in down markets, the strategy has latitude to raise cash or deploy other defensive positions. A secondary objective of the Moderate Strategy is to generate an attractive income stream alongside long‑term growth.
The PVG Conservative Strategy is structured for investors prioritizing stability but still seeking some growth exposure. It typically holds approximately 40% equities and 60% bonds, with allowable flexibility ranging from 0–50% equities and 0–100% bonds under unusual circumstances. Because bonds generally carry lower volatility than stocks, this allocation seeks to reduce portfolio fluctuations while still participating modestly in equity market appreciation. Equity holdings cover a wide range of market sizes and geographies, while bond holdings remain well diversified across government and corporate credit. The strategy also aims to generate an attractive income stream.
The PVG Income Strategy is designed for investors focused primarily on stability and income generation. It generally maintains 20% equities and 80% bonds, emphasizing high‑quality fixed‑income exposure with modest growth or inflation‑hedging potential. This strategy typically exhibits significantly lower volatility than the stock market, albeit with more limited growth potential during strong equity periods. On rare occasions when both stocks and bonds decline together, the strategy can shift bond ETF exposure to resemble a cash‑like defensive posture. Its primary objective is to provide reliable income with lower overall risk.
