Our Investment Process

Be prepared. Plan accordingly.

Our Investment Philosophy:  Manage custom portfolios of institutional quality, built upon diversification and risk management, with low cost beta and highly curated alpha.

We provide counsel based on the following principles:

Fundamental Value

We are long-term investors who believe a rigorous bottom-up, fundamental analysis offers investment opportunities of the highest caliber and yields attractive returns.

Strategic Asset Allocation

We believe a globally diversified portfolio with a range of asset classes improves a portfolio’s risk-return profile.  We complement a core portfolio with a diversified mix of non-correlated assets. We utilize broadly held asset classes including: fixed income, equities, real assets, hedge funds, and private equity. We further diversify by market capitalization, investment style, and geography.

Active vs. Passive Management

The firm employs active management where market inefficiency and opportunity indicate that managers can provide real value for the additional fees and taxes that will impact clients. Passive strategies are used where performance dispersion is tight.  Passive strategies are expected to deliver long-term exposure in line with asset class characteristics, as defined by the firm’s strategic allocations.

Transparent Relationships with Investment Managers

Strong relationships with fund managers strengthen our active investment process. High-quality relationships allow for intimate knowledge of an investment manager – what drives portfolio performance; why is the manager effective; factors that may impact a portfolio’s behavior; and the cost of capital across asset classes.  In addition to working with best-in-class active managers, client portfolios have inexpensive index exposure to a variety of individual asset classes.

Risk Management

Of paramount importance is the preservation of clients’ capital. Investors cannot avoid risk, which is why prudent management of risk is essential for meeting an investor’s goals. Portfolio construction takes into account an understanding of a client’s risk-carrying capacity as well as psychological risk tolerance. Dynamic risk management is employed as appropriate.

Disciplined Governance with a Tactical Overlay

Tactical portfolio shifts are considered when market valuations create compelling opportunities that can be harvested to generate excess returns while managing risk. Knowledge of a portfolio’s underlying holdings enable advisors and clients to be proactive should a change occur in a portfolio’s performance. Rebalancing allows for portfolio reshaping as markets change or a client’s needs evolve.

Tax Efficient Investment

In addition to transaction costs and management expenses, portfolio turnover and taxes can be detrimental to overall client wealth. Clients’ net returns are enhanced through tax optimization – appropriate asset location; after tax return in asset allocation; and opportunistic tax loss harvesting.