Chief Investment Officer, Derek Izuel, featured in Advisor Perspectives with Shelton Capital Management’s 2026 Investment Outlook.
Overview
The Shelton International Select Equity SMA Strategy seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of 30-50 stocks. The strategy uses a proprietary process that focuses on identifying companies that generate superior and consistent internal returns on capital in order to create shareholder value. The strategy invests primarily in mid- to large-cap foreign equity securities.
Strategy Objective
The Shelton International Select Equity Strategy seeks to deliver attractive risk-adjusted returns over time.
Where The Strategy Can Fit
The strategy may be relevant for investors and advisors seeking a high-conviction international equity allocation focused on long-term capital appreciation and disciplined risk management.
- A concentrated portfolio of 30-50 international stocks.
- Exposure to mid- and large-cap foreign equity securities.
- A proprietary process focused on companies that generate superior and consistent internal returns on capital.
- International equity exposure that may complement a domestic equity allocation.
- A separately managed account structure with portfolio visibility and customization potential.
How Shelton Builds The Portfolio
The International Equity team at Shelton Capital manages concentrated, high-conviction portfolios of non-U.S. large-cap and mid-cap companies. Shelton Capital Management offers this strategy through SMAs and a mutual fund.
The strategy combines analysis of the investment merit of each individual stock with prudent risk management to pursue consistent and superior returns.
A distinctive approach to international investing: Inside, Outside, Upside.
Why Investors Consider An International Select Equity SMA
- Concentrated portfolio of 30-50 stocks with a high active share and relatively lower tracking error.
- Use of data science and machine learning to access insight into a range of possible future outcomes.
- Focus on companies believed to deliver strong performance while contributing to the risk profile of the portfolio.
- Access to fast-growing, developing markets.
- Potential complement to U.S. equity exposure within a diversified portfolio.
- SMA structure that may support greater transparency and customization than a pooled vehicle.
Strategy Considerations
- The Shelton International Select Equity SMA Strategy seeks to deliver attractive risk-adjusted returns over time by investing in American Depository Receipts, or ADRs.
- All investments involve risk, including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
- Foreign currency fluctuations can add volatility to foreign equity prices.
- International investing involves additional risks related to foreign economic, political, monetary, and legal factors.
Management Team
Derek Izuel, CFA
Tony Jacoby, CFA
Common Questions
The Shelton International Select Equity SMA Strategy is a concentrated international equity strategy that invests primarily in mid- to large-cap foreign equity securities and seeks to deliver attractive risk-adjusted returns over time.
The strategy seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of 30-50 stocks.
The strategy uses a proprietary process that focuses on identifying companies that generate superior and consistent internal returns on capital in order to create shareholder value. The team also focuses on a company’s economic returns and reinvestment rate when making assumptions about future cash-flow generation.
International investing involves additional risks, including foreign economic, political, monetary, and legal factors. Foreign currency fluctuations can also add volatility to foreign equity prices.
Contact Us for More Information
We have a team of professionals dedicated to supporting the needs of our advisor clients.
Important Information
It is possible to lose money by investing in the strategy. Past performance does not guarantee future results. There are management fees and other charges associated with the Shelton Separately Managed Account programs. Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities.
There may be additional risks associated with international investing involving foreign economic, political, monetary, and/or legal factors. International investing may not be for everyone. The information contained in this document is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it does so entirely at his or her own risk.
Any projections or other forward-looking statements regarding future events or performance of countries, markets, or companies are not necessarily indicative of, and may differ from, actual events or results. This information is intended to highlight issues and not to be comprehensive or to provide advice.
The MSCI ACWI ex USA is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the United States, and emerging markets. It is not possible to invest directly in an index.
Distributed by RFS Partners, a member of FINRA, and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
