Mission: Preservation and Expansion of Wealth
Our mission is clear: the enhancement of our clients’ financial lives. We believe that in making financial decisions it is helpful to have a disciplined and objective partner who delivers advice based solely on an intimate understanding of one’s needs and objectives. Our clients want a single point of contact for direct answers to their financial needs. We serve as that resource and clients rely on us for matters ranging from the routine to the extraordinary.
Simply put, we help our clients quantify what they have, calculate what they need, chart the course between the two and ensure that they stay on path. Our goal is to provide superior investment solutions, client service and wealth advice without conflicts.
It has been our contention for some time that investors should consider an investment philosophy that considers allocating money to both Core investments and Tactical investments. The search for “alpha” – returns over and above the public markets – has become more difficult as volatility shifts quickly from one asset class to another and investment returns in general experience downward pressure. However, lower than average returns does not mean there will necessarily be fewer investment opportunities. In fact, we believe there are many tangible investment opportunities in the various asset classes of the global capital markets that can help enhance returns or reduce risk for many investors.
Core versus Tactical Portfolio Structure
Building investment portfolios that separate a core strategic allocation from an opportunistic tactical allocation is the most efficient and effective way to take advantage of any investment environment, whether bear, bull, recovering, or sluggish. This philosophy allows an investor to keep their long term goals and objectives at the forefront of their portfolio strategy, while allowing the investor to adjust to existing economic conditions by implementing visible tactical investment themes in the short term.
We believe the core strategic allocation should represent 80 – 90% of an investors overall portfolio. This allocation should be designed to achieve specific goals or objectives from a risk and return perspective and should always be consistent with the investors overall risk profile. The core strategic allocation should include investments in stocks, bonds, cash and alternative investments. In addition, this allocation should be rebalanced at least annually in order to take advantage of dollar cost averaging and to maintain the appropriate risk/return relationship of the portfolio. The long-term outlook for the global economy, profit cycles, and market valuations should drive the core allocation of the portfolio. The remaining 10-20% should be allocated to opportunistic or tactical investment themes that are highly visible and may be shorter term in nature. This can be implemented through a variety of investment and asset classes that contain characteristics designed to take advantage of certain cyclical trends or a change in portfolio strategy.
Risk Assets versus Conservative Assets
It is the full combination of both Core and Tactical allocations that determines the allocation of the Risk and Conservative Assets. Even when an investor allocates to “special situations” or cyclical investment opportunities, it is critical that the overall division between Risk Assets and Conservative Assets remain within the pre-determined risk range of the particular profile. This process allows an investor to take advantage of various short and long term investment themes with a number of different asset or investment classes without materially changing the overall risk of the portfolio.