Our Process
The foundation of our investment process is a four-step approach that is as individualized as our clients themselves.
Why is Investment Process So Important?
There are a number of factors that result in the need for a consistent, disciplined investment process:
- The annual return of a portfolio cannot be controlled or predicted.
- Both known and unknown factors contribute to how securities and asset classes perform and interact in a portfolio.
- Typical asset class behaviors and relationships break down under distressed market conditions, and the benefit of diversification is lost.
- We cannot time “fat tail” or extreme events.
For these reasons, we can only rely on a prudent process in portfolio management.
Our Process
Our investment management process is divided into four main steps:
STEP 1: Set Investment & Risk Policy
We identify a clear set of investment objectives based on your investment criteria such as risk, expected return, liquidity needs, tax considerations, and time horizon, among other personal, financial and emotional factors. We create an investment policy that takes these factors into consideration and forms the foundation for managing your assets.
STEP 2: Construct Benchmark Portfolio
STEP 3: Select & Implement Specific Investments & Strategies
Identify the active and passive investments in expressing the portfolio allocation for both core and satellite portions of the portfolio. Over time, based on our cyclical and secular global macro views, we tactically allocate portions of the portfolio for opportunistic and risk avoidance purposes.
STEP 4: Monitor and Rebalance
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