Service Sector Strategy

After years of extensive research, Runnymede identified the service sector as the most attractive investment opportunity and began managing client portfolios in this sector. Our research has been confirmed by superior performance investment results that have been independently verified.

Favorable Investment Characteristics
Service companies are entrepreneurial, stable, less cyclical, and self-financing. Furthermore, they have extremely sticky businesses. Rather than receiving a single payment for a product or piece of manufactured equipment, service companies often have a subscription pricing model. Service businesses tend to be scalable with the ability to grow from a regional to national to international company. Service companies are benefitting from many mega-trends ranging from technology-related productivity gains to margin expansion from outsourcing.

Superior Returns and Specialists in Service Investing
Service companies are less cyclical and more stable which translates into less volatility and more predictable growth. We seek to invest in companies that consistently make money, quarter after quarter, year after year.

Runnymede is the only known investment team focusing on this exciting investment opportunity that gives you pure exposure to the most dynamic growth sector of the US economy. If you would like to learn more about our Service investment portfolio and our more than 5-year superior performance record please call Andy Wang or email for more information.

Service Kerchunkers on the March
In our extensive research and analysis of service companies, we invented a new word kerchunker, registered with the US Patent and Trademark Office. Kerchunker companies are service companies that deliver predictable, visible growth through a recurring revenue or subscription model. History has shown that stock prices follow earnings so being less cyclical and more stable means that this group of companies provides.

Global Opportunity
The Service sector opportunity will be compelling investment strategy for many years to come. Service sector revenues in the U.S. account for about 1/3 of service sector revenues globally. While our current focus is primarily on US listed stocks, the global opportunity in service is enormous. As emerging markets transition from manufacturing to service economies, investment opportunities will be great.

Less Volatility and Less Worry
All investors benefit over time by moderating downside risk and keeping one’s growth exposure to the upside. With service companies, you do not have to worry about the volatility of commodity prices because these companies do not have significant raw material costs. You do not need to worry about rising interest rates because most service companies are self-financing with little to no debt, and therefore do not need to borrow heavily from banks.