Low volatility investing focuses on owning stocks that have historically exhibited less price fluctuation than the broader market. These companies often demonstrate relatively stable earnings and predictable cash flows. While low volatility does not eliminate market risk or prevent losses, this approach seeks to emphasize stocks that have experienced smaller price swings over time.

Equity markets can experience periods of heightened volatility that affect even fundamentally strong companies. Low volatility investing aims to reduce the impact of sharp market movements by emphasizing businesses with stable operating characteristics and resilient business models. By focusing on consistency, this strategy seeks to support long-term participation in equity markets while moderating the impact of market turbulence.

Investors seeking equity exposure who prefer a smoother investment experience and are willing to trade some upside participation for reduced volatility. This approach may appeal to those focused on consistency, drawdown awareness, and long-term capital growth across market cycles.

At CooksonPeirce, low volatility investing is not limited to simply selecting stocks with the smallest historical price swings. Each holding must demonstrate relatively low realized volatility, consistent historical earnings and revenue patterns, and a high degree of consensus among forward-looking expectations. The strategy also incorporates a disciplined mean-reversion framework—adding to defensive positions following periods of underperformance and trimming exposure after exceptional strength. This process seeks to maintain alignment with long-term objectives while emphasizing stability.