Portfolio Management

Investment Strategy

We design our own portfolios with several goals in mind: diversification, loose correlation between asset classes, and asset class allocation based on risk tolerance. The funds we use to create our portfolios are selected based on many factors ranging from expected returns to expense ratios. Taken together, the portfolios attempt to achieve better risk adjusted returns as a result of the loose correlation between asset classes than they ordinarily might have if these funds were closely correlated.

Tactical Allocation

Trying to time the market precisely to enhance returns is a recipe for disaster since nobody can predict markets with consistency. However, what we do pursue is positioning our portfolios to take advantage of business cycles and identifying undervalued or overvalued asset classes from historical norms and expected potential returns from that point in time once we have a good handle of a client's risk tolerance.

Risk Tolerance

Risk is something that everyone has a different tolerance for. Some of us are eager to go skydiving while others may not wish to even board an airplane. Risk in investments is defined as the likelihood that a particular investment (or series of investments together) will earn an expected return. In general, the riskier the investment, the more it fluctuates from an expected return but the greater that return could be. To find out more about our clients' risk tolerance, we ask questions like:

When do you expect to start drawing on your investment?
If you experience a drop in your investment, would you want to sell everything?
Do the market fluctuations keep you up at night?

One of the ways to assess risk is by assigning a risk number (Think a speed limit that you are comfortable with). Click below to find out what your risk number is. You might be surprised!