Investment Management

OUR INVESTMENT PROCESS

OUR INVESTMENT STRATEGY

We are active “asset allocators.” We believe the best way to navigate financial markets is to assemble highly diversified portfolios across a wide range of asset classes. Using our background and expertise as bottom-up investors, we closely watch markets to find asset classes and sectors that look attractive. Once we have found a potentially attractive area for investment, we search for the most cost effective way to obtain exposure to the potential returns. Our portfolios use a mix of individual Stocks, ETFs, and actively managed mutual funds, as well as bonds. For the majority of our clients we seek to manage downside risk as capital appreciation is just part of their investment objective.

Equity - For the equity portions of our portfolios, we manage two primary approaches:

Core Satellite - Indexed exposure to large-capitalization stocks through individual stocks and low-cost exchange traded funds. Allocation to mid- and small-capitalization stocks and international securities is accomplished again through low-cost exchange traded funds and no-load, low fee and more tax efficient funds. Our Core Satellite approach is a broadly-diversified offering with an emphasis on regular re-balancing and keeping total costs (management and underlying investment) low.

High Quality Dividend - Purchase of primarily large-capitalization stocks with strong balance sheets, an attractive dividend yield, and a record of increasing dividends.

Fixed Income – “More Money Has Been Lost Searching for Yield than at the Point of a Gun”

We believe risk-taking is better suited for the equity portion of a client’s portfolio and thus focus our fixed-income investments on investment grade government and corporate issues. When we do venture towards higher yielding bonds we use a diversified approach using Exchange Traded Funds and best in class Managed Mutual Funds whose research teams have the time and expertise that allow us to gain the proper exposure without assuming extra ordinary risk. We purchase bonds direct from institutional brokers and do not inventory or mark-up bonds.

Alternative - For public ‘alternatives’ to traditional equity/fixed income exposure we will utilize select REITs and opportunistic commodity-related investments, and certain actively managed mutual funds with a history of uncorrelated yet attractive risk-adjusted returns. Where appropriate, we maintain extensive relationships with third-party hedge fund, private equity, venture capital, and real estate focused partnerships.