In a recent episode of “Behind the Ticker,” John McHugh, founder of WealthTrust Asset Management, shared his extensive experience in portfolio management and the innovative strategies his firm employs. McHugh, who began his career at Merrill Lynch in 1988 and later joined Oppenheimer and Wells Fargo Advisors, eventually founded WealthTrust in 2015. His motivation stemmed from a desire to manage portfolios on a discretionary basis and offer superior performance, which he has successfully achieved with WealthTrust’s long-term growth portfolio outperforming the S&P 500 65% of the time since 2000.
WealthTrust Asset Management provides a wide range of portfolio management services across six turnkey asset management platforms. The firm manages 12 different strategies, including small-cap, mid-cap, fixed income, and large-cap portfolios, as well as two balanced portfolios. WealthTrust is notable for its GIPS (Global Investment Performance Standards) compliance, a testament to its rigorous performance measurement and presentation standards. McHugh emphasizes the firm’s commitment to educating advisors and their clients through webinars and collaborative presentations, highlighting the importance of understanding their investment methodology.
A significant focus of the podcast was on WealthTrust’s flagship ETF, WLTG (WealthTrust Long-Term Growth ETF). This ETF employs a growth-at-reasonable-price strategy, competing with benchmarks like the Russell 1000 but with a stronger growth orientation. McHugh detailed the rigorous screening process used to identify companies with high-quality earnings and dividends, aiming to construct a portfolio of 25 to 30 large-cap and mega-cap stocks. The selection process relies heavily on quantitative analysis, including earnings quality, dividend quality, and quantitative rankings that signal the likelihood of companies beating earnings estimates.
In addition to its fundamental analysis, WLTG incorporates an AI-driven momentum overlay, which enhances the portfolio’s performance by identifying stocks with strong momentum. This dual approach allows WealthTrust to dynamically adjust its holdings based on market trends, ensuring the portfolio remains well-positioned for growth while managing risk. McHugh highlighted the flexibility of the ETF to shift between growth and value stocks and even include passive ETFs or defensive assets like treasuries and gold during market downturns.
WealthTrust’s innovative approach to portfolio management and the WLTG ETF provides a compelling option for advisors and investors seeking to enhance their large-cap growth exposure. McHugh’s extensive experience and commitment to rigorous analysis and education underscore the firm’s dedication to delivering superior investment solutions. For more information about WealthTrust and their ETF offerings, visit their websites at WealthTrustETF.com and WealthTrustAM.com.
