Institutional & Endowment Models: We strongly believe that individual investment allocations should employ the techniques, tools, and knowledge of institutional strategies whenever possible.
Strategy Diversification: We believe that asset allocation is the most important determinant of a portfolio’s risk and return over time. We design globally diversified portfolios that cover the major asset classes of domestic and international equities, fixed income, and alternative investments. We then utilize a variety of disciplined, well-researched strategies to navigate the different asset classes to develop a true global macro portfolio.
Independent Thinking: We believe that the most effective investment approach is through independent, objective thinking. We are an independent firm employed by our clients. Our independence allows us to seek out best-in-class investments.
Capital Preservation: We believe our job is to protect and build your wealth. We do this by identifying short and long-term risks, and then designing strategic and tactical portfolios to prudently manage these risks in order to preserve capital today and grow your assets in the future. We use our global tactical approach because it emphasizes risk management. We also want to minimize the negative impacts of expenses, taxes, and inflation. We are committed in identifying strategies that can significantly improve the chances of the success of your long-term financial plan.
Pundit Predictions: The future is impossible to predict with any degree of precision. It is important to have adaptive, tactical, dynamic, unconstrained strategies as a portion of your overall allocation.
Growth vs. Risk: While earning a competitive or even superior rate of return is nearly universally desirable, managing risk exposure is the most important consideration in portfolio design.
Trend Following: Trends can persist for extended time periods until they change, often dramatically. Using different tools to identify these trends, our goal is to participate in the upside of the trends and sidestep the tsunami waves that ultimately crash on the shoreline.
Discipline: The biggest obstacles to long term success are unrealistic expectations and lack of discipline. When a strategy doesn’t work, investors often jump ship for the next best thing. In contrary, when a disciplined, time-tested strategy has a drawdown, it’s generally the best time to increase your exposure. Investors tend to be emotional and lack discipline, both of which lead to poor decision making.
DIY (Do It Yourself): Luck often overshadows skill, especially in the short run. We have seen too many hobby investors succeed with a few lucky trades only to fail in the long run. Trying to save on a management fee only to lose your shirt is a classic penny-wise, pound-foolish cycle. Just because Warren Buffet promotes ‘buy and hold’ doesn’t mean you hold your “hot stock” tip as it heads toward zero.
For more information, please contact Scott Brooks at 949.545.6500.