Investment Methodology

The foundation of our investment approach is built by working closely with our clients to identify investment objectives and financial goals. Taking into consideration our clients’ needs as well as the current economic environment, we tailor financial plans to each client’s individual situation.

Tactical Asset Allocation

Asset allocation plays a very important role in our financial plans as studies have shown that over 90% of the variation in portfolio returns is due to asset allocation and not individual security selection. When formulating an asset allocation strategy we focus on diversification across asset classes, investment styles, geographic areas, and market capitalizations. Our analysis is focused on positioning portfolios in asset classes and segments of the market that are not highly correlated in order to ensure diversification benefits for the portfolios we manage.

Utilizing a proprietary screening methodology, we monitor hundreds of different markets, sectors, and asset classes each day. This approach allows us to identify the best managers in each segment of the market by objectively screening thousands of managers with an emphasis on consistency and risk-adjusted returns. We are not affiliated with any financial conglomerate, and have no incentive to sell any particular products. As a result, we base our investment decisions solely on risk/reward profiles that are constructed through quantitative and qualitative investment analysis.

An Institutional Approach

All of our clients’ portfolios are managed on an institutional platform, giving us access to managers and share classes that are not available to the retail investor. Our platform is unique in that we utilize a fee-only model where compensation is tied directly to the value of assets under management. Financial planning services are also available at hourly rates.

Commissions, loads, and sales charges are totally absent from our investment advisory practice. This platform reinforces the fiduciary duty that we have to our clients, as we have a vested interest in each portfolio that we manage.

After an asset allocation strategy has been constructed and employed, we meet regularly with our clients to closely monitor the progress of each plan. Performance is monitored on both a nominal and relative basis, and investment objectives and goals are reviewed periodically so that we are aware of any changes in our clients’ circumstances.

Comprehensive Financial Planning & Risk Management

Financial planning involves much more than portfolio management and we are equipped to ensure that all aspects of our clients’ financial lives are secure. We coordinate efforts with our clients’ professional advisors so that the financial plans that we develop are holistic.

Our approach to risk management involves a quantitative and qualitative evaluation of the different risks to each client’s financial plan. In accordance with our fiduciary duty we work with industry leaders and develop plans to transfer risk away from our clients.

Intergenerational wealth transfer is a high priority for many of our clients’ families, and we work closely with everyone involved to ensure that each family’s goals are achieved through prudent planning.

Behavioral Economics – A Distinctive Area of Focus

A distinctive area of focus for our firm is the field of behavioral economics. While traditional economic theory holds that all market participants act rationally to maximize return and utility, the empirical data is quite conclusive that market participants rarely behave logically. Learning from some of the field’s leading authorities, we seek to improve risk-adjusted returns by better understanding the biases in the human psyche that can impair rational investment decisions. Behavioral economics is pioneering new developments in investment analysis, and we incorporate these models into our methodology.