A Portfolio of Fixed Income, Pass Throughs and Small Caps

The most challenging -- and fun -- part of my job as an investment advisor is constructing a new portfolio. As I use a "fee-only" model, I never put my clients in funds or ETFs that have embedded expense ratios and up-front sales loads. No, I pick individual securities, and I am fortunate enough to be starting with new clients this week. So, the question anyone in finance is asked at cocktail parties "what are you buying" becomes the more time-sensitive "what are you buying NOW?" Building portfolios is not an easy task, especially since I try to keep my clients fully invested at all times.

So, what am I buying NOW? It's a mix of the securities I have written about for Real Money over the past few months, plus a few new ideas. Philosophically, the asset allocation is still the same: heavy on corporate fixed-income securities, mezzanine securities (preferred) pass-through securities (BDC-RICs, REITs) and a common stock component that is entirely composed of small-capitalization stocks....497 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.