How do pros invest for their personal portfolios?
A series of local financial planners have agreed to "open the kimono." Up first: Dave Hoyer, registered investment adviser with Prometheus Capital in Yardley.
Often, professional money managers invest differently for clients than they do personally (for what reason, we are mystified). But in Hoyer's case, he's proud to eat his own cooking.
"I own what I also buy and sell for my clients," says Hoyer. He and his wife, both 66, have retirement accounts, will draw pensions, and applied for and suspended Social Security benefits.
Hoyer's personal investment accounts are admittedly more aggressive, partly due to his age and his profession as a certified financial planner. Typically, 70 percent of his portfolio is invested in U.S. equities, 20 percent in international equities, 5 percent in cash and fixed income, and 5 percent in mutual funds such as ClearBridge Tactical Dividend Income fund (LBDAX), which invests in master limited partnerships.
As a fee-only adviser, he prefers no-load, open-end mutual funds and doesn't receive commissions when he buys or sells for clients.
Hoyer is not a big believer in bonds currently, which is why he sold PIMCO Total Return bond fund recently. As a proxy for bonds, he holds high-dividend-yielding stock funds such as Cohen & Steers Preferred Securities and Income Fund Inc. (CPXCX).
"During normal interest-rate periods, I would have folks in bonds, but interest rates are so artificially low, bonds may not do well for some period," he says.
Hoyer now owns these equity mutual funds: American Century Mid Cap Value (ACMVX); American Funds Europacific Growth (AEGFX); American Funds Fundamental (AFIFX); American Funds International Growth and Income (IGFFX); Vanguard Mid Cap Index (VIMAX); Schroder International Multi-Cap Value (SIDVX); T. Rowe Price Real Estate (TRREX) and Mid Cap Value (TRMCX); Fidelity Small Cap Discovery (FSCRX); Matthews Pacific Tiger (MAPTX) and Matthews Asian Growth & Income Investor (MACSX); and Royce Special Equity Investment (RYSEX).
Not everything has been a winner. He sold Royce Premier Investment (RYPRX) at a small loss after poor performance.
Hoyer also owns individual stocks, including Berkshire Hathaway Class B shares, Home Depot, Amazon.com, Apple, Express Scripts Holding, Ford, General Electric, Google, Intel, IBM, Johnson & Johnson, Microsoft, and Rite Aid.
Except for Berkshire Hathaway, which represents about 7 percent, each stock typically totals no more than 1 percent of his portfolio.
Hoyer and his son both recently purchased Tesla.
"My son works out in Silicon Valley as a software engineer. He bought Tesla stock around $209, and he gave me a hard time because I bought it at $220 a share," he says, laughing.
His holding period is typically several years, Hoyer adds.