1. Manager Selection
With so many investments to choose from how do you identify the managers you want in your portfolio? First, our firm utilizes Returns-Based-Style-Analysis to screen over 20,000 investment options including mutual funds, ETFs, separately managed accounts, and hedge funds. From those meeting our criteria, our research team utilizes over 30 quantitative filters to identify those managers that display similar characteristics of the overall investment philosophy of our firm. A few of these characteristics include but are not limited to:
2. Asset Class and Manager Optimization
The portfolios are built based on two essential components. The strategies begin with “Efficient Frontier” theories and are overlaid with a tactical component from our investment committee. The research team utilizes the “Efficient Frontier” classical portfolio theory used by many investment managers in their asset allocation decisions. According to the theory, whenever an investor has a collection of diversified, uncorrelated assets, an “Efficient Frontier” can be built. This is to say, it will have the highest expected return for any given level of risk. The investment committee provides further enhancement to the traditional “Efficient Frontier” theory by utilizing the Black-Litterman modeling system that provides two distinct differences:
3. Ongoing Review and Monitoring
With actively managed portfolios the ongoing review and monitoring is critical to keep investors informed and investment strategies updated to address today’s ever-changing market conditions. Our firm conducts daily, weekly, monthly, and quarterly updates to constantly ensure our investment strategies stay on track with:
A Winning Stategy
With a strong focus on risk-averse, we aim to deliver satisfying results with a more comfortable investor experience than traditional buy-and-hold strategies which are often susceptible to severe swings as they capture large portions of negative, as well as positive, market movements. At our firm, we accept the possibility of missing some of the upswings in order to minimize downside risk. Our investors benefit from our use of large low and negatively correlated asset class exposures and money market positions to reduce downside volatility. And because we rigorously follow our model, investors know what to expect from us.
Past performance is no guarantee of future results. Investments are subject to risk, and any of our firm’s investment strategies may lose money.