Investment Process (more details)

Here is more detail about how we strive to use the "four values" as our basis for the investment process. The process applies primarily to the actively managed American Hero Equity Portfolio, whereas the composition of the American Hero Index it is largely determined by the research process.

• INTEGRITY
  • Use only American Hero Companies as determined by proprietary 500 point scoring process

• HUMILITY:  Portfolio Strategy*
  • Team approach
    • Three team members
      • George Parks, CFP, chairman
      • Carter LeCraw, CFP, voting member
      • Benny Van Huss, contributing member
• Style: Core/Multi-cap blend
• Use at least 7 of 10 GISC® sectors
• Use concentrations between 50 and 200% of S&P 500
• Use multiple industries within sector where applicable
• *universe contents influence style and concentration
• Equal Weight Portfolio
• All stocks participate in performance
• Rebalance annually
• Academic studies
• Concentrated Portfolio
• 20 to 30stocks

• DILIGENCE: Stock Selection/ranking
• Long term performance
• 3, 5, and 10 year total return
• Relative strength to S & P 500
• Efficient management
• Return on equity
• Gross margins
• Net income growth
• Yield
• Strategic advantage
• Debt level
• Price earnings
• Fair value*
• Competitive advantage
• Fundamental grades
• Values Index
• *Argus, Morningstar, S&P
• CARING: Management
• Rank stocks monthly within GISC® sectors
• watch list
• attribution analysis
• Macro analysis
• Sector concentration
• Adjust holdings as compelling reasons are identified