Our Investment Philosophy

Our investment process seeks to create portfolios that meet our clients’ financial needs. Some objectives focus more on return, while others emphasize capital preservation. Regardless of the objective, all of our portfolios are built on a disciplined decision making process and a focus on risk management.

Investment Team Objectives

  • Creating portfolio guidelines that are transparent and cover a wide range of client goals
  • Focusing on risk management and a consistent decision making process
  • Monitoring portfolios and employing rebalancing to keep risks in line
  • Maintaining discipline and avoiding emotional decision making

Key Tenets of our Investment Process

  • Sufficient diversification is essential to limit investment risk
  • Asset allocation is the key driver of long-term results
  • Turnover should be kept to a minimum
  • Investments must be considered with respect to the broader portfolio
  • Passive strategies are an important component of keeping fees low and managing risk
  • Straightforward, transparent, and liquid is better than “latest and greatest”

We Do Not Believe In

  • Attempting to ‘time the market’ and forecast political and economic factors
  • Chasing market trends and ‘specialized’ investment vehicles of the month

Investment Risk Management Principles

  • Risk must be assessed at the portfolio level, not the individual security level
  • Sizing of positions is critical; a small position in a very risky fund is less risk than a large position in a moderately risky fund
  • Quantitative risk metrics are helpful, but often flawed. Common sense must also be a part of decision making
  • The best way to protect against unforeseen life and market events is through ample liquidity
  • No return is guaranteed; investors must always think in terms of probabilities
  • Diversification works; however, the mix of assets needed for proper diversification can, and will, change over time