Zen 40 Strategy
Available exclusively to Zen Advisory Program Clients
The Zen 40 Strategy is a concentrated equity strategy built around individual stock ownership. It typically consists of approximately 40 individual positions and is used where portfolio size, tax considerations, and complexity make individual holdings appropriate. This strategy is implemented selectively, not universally, and complements rather than replaces diversified core portfolios.
Investment Approach
The strategy focuses on large-cap companies with durable earnings and emphasizes a balance between growth and income through dividends. Income matters because it provides cash flow across market environments, creates flexibility for reinvestment or use, and helps smooth portfolio behavior over time. This income and growth orientation reflects a disciplined approach to long-term equity investing.
Diversification and Structure
Diversification within the Zen 40 comes from owning multiple individual companies, exposure across sectors and industries, and balancing income-producing and growth-oriented businesses. This is not an index. Holdings are selected intentionally, and portfolio composition may evolve over time based on market conditions and client needs.
Tax Considerations
Owning individual securities can provide flexibility around tax management and allow for more precise realization of gains or losses. This can be useful in taxable accounts when portfolio size supports it. While tax considerations are an important part of implementation, they are evaluated in the context of each client's broader financial situation.
How the Strategy Is Managed
We monitor holdings on an ongoing basis, review position sizing and diversification, and make adjustments as conditions or client circumstances evolve. The strategy is integrated into the client's broader portfolio structure and managed with the same discipline and care applied to all client accounts.
Who This Strategy Is For
The Zen 40 strategy is generally considered for clients with larger portfolios, clients seeking additional diversification beyond ETFs, clients comfortable owning individual securities, and situations where complexity adds value rather than risk. This strategy is not appropriate for everyone and is used only where it fits within a client's overall financial plan.
Transparency
Holdings are disclosed, and positions and weights are visible. The strategy emphasizes clarity and accountability. There is no "black box" implementation—clients know what they own and why. As an independent, open-architecture firm, we are not tied to proprietary products or platforms, and every holding decision is made with the client's best interest in mind.
Strategy descriptions are for informational purposes only and do not represent performance.
