Our Investment Management Philosophy
Our investment philosophy is built on a belief in long-term evidence-based investing, centered on risk management through a disciplined, multi-dimensional, and diversified approach. We apply that philosophy to each unique client relationship providing the fortitude to bridge the gap between investment goals and their realization. We design and construct portfolios, consistent with our philosophy, that are customized to meet each client’s needs and goals.
We believe that over time, capital markets are largely efficient and rational, yet often in the short-term, individual human beings and decision makers are not. We balance our belief in the power of capital markets with the undeniable truth that pricing can deviate from fair value for periods of time. Nonetheless, in the long-run, evidence suggests a well-structured and disciplined portfolio can drive superior risk-adjusted expected returns to create and sustain wealth.
We find value in making the complex simple for client portfolios. We strive to block out “noise” and stay true to our investment philosophy. We focus on differentiating between what is “noise” and what is useful information that can keep portfolios on track, long-term.
To realize our investment philosophy we adhere to a style of portfolio management. Our management style incorporates both passive and active strategies, across many asset classes, geographies, and styles without engaging in excessive trading. We construct broadly diversified portfolios. It is our opinion that through proper diversification risk can be better minimized and opportunities for long-term investment success maximized. We utilize a diversity of lower-cost investment vehicle structures to best fit client needs depending on their financial situation. We leverage consistent independent market research to ensure our portfolios are consistent with our investment philosophy. When proven research suggests, we may tilt allocations towards specific styles and assets classes with certain managers yet consistent with our investment philosophy.
We also offer socially conscious and responsible investing options for our clients so that if desired their portfolio can align with their own personal values and beliefs on social issues. Investing is a personal experience and we feel it is important for clients to be comfortable with not only how they invest their assets (from a strategic perspective), but also where they invest.
Our Investment management process
We start by understanding investment goals - ideally as part of, and in conjunction with, a financial plan. Once we have a general understanding of these goals we begin analyzing and understanding appetite for and attitudes towards risk. Once risk has been determined we can develop and build an appropriate portfolio consistent with an agreed upon model within a written Investment Policy Statement (IPS) between the advisor and client.
As part of our process we then design a portfolio consistent with our philosophy. We educate clients that we do not necessarily think of investment portfolios in a binary approach of simply equity and fixed income, but rather as a spectrum of assets with various risk and return factors attributed to each. Therefore, within each asset class there are competing risk and return profiles that can be combined and leveraged to construct reliable portfolios with better odds of producing attractive risk-adjusted returns. Using this fluid approach we build portfolios better suited to each client’s specific needs.
We monitor the portfolio on an ongoing basis with appropriate rebalancing and minor tactical shifts that are consistent with our long-term approach.
what we will & will not do when managing your portfolio
Formulate and agree upon tailored investment parameters in a written Investment Policy Statement (IPS).
Invest in transparent and liquid investments based on research and well-defined statistics.
Tax-efficiently manage portfolios to targets and risk factors determined within the IPS.
Strategically tilt allocations in a tactical manner based on macro-economic opportunity sets.
Rebalance portfolios in a thoughtful and methodical manner.
Conduct ongoing research and leverage our relationships with independent external partners and their best-in-thought investment strategies and resources.
Educate clients on their portfolio design and strategy to promote meaningful dialogue between advisor and client.
Review and allocate to appropriate managers using mutual funds, exchange-traded funds and separate account managers.
We will not:
Deviate from agreed upon investment parameters without client consent.
Participate in expensive alternative investment strategies as a significant (greater than 20%) component of client portfolios.
Select and invest in significant amounts of individual stock securities other than incoming or legacy concentrated positions and employer stock.
Invest client money in products you object to or are uncomfortable with,
Engage in market timing strategies.
Guarantee future investment performance or market movements.