Investment Management
Investing creates wealth. Unlike saving (a low-risk approach designed to protect your money with little concern for growth), or speculating (a high-risk attempt to make a lot of money quickly), investing is a thoughtful, prudent approach to money management. Investing not only involves taking the reasonable risks necessary in exchange for the opportunity to earn higher long-term returns, but also requires discipline and planning.
Our Investment Philosophy
Our philosophy is to design and manage portfolios utilizing a disciplined long-term strategy based on sound fundamentals proven to influence investment success. The foundation of our investment management philosophy is based on rigorous academic research and financial science, which shows that a properly diversified selection of uncorrelated asset classes, managed with a disciplined rebalancing methodology, is the best approach to provide investors the highest probability of attaining their financial goals.
Diversification and Asset Allocation
An important component of successful investment management is reducing risks that do not generate additional expected portfolio return. The key to minimizing these risks is diversification, which is the formal name for the principle: You should not put all your eggs in one basket.
An additional risk affecting security returns that is non-diversifiable is called systematic (market) risk. A number of empirical studies have shown that asset allocation – the choice of riskier assets (e.g. stocks) vs. less risky assets (e.g. bonds or cash equivalents), for instance – is what matters most in determining the risk and return of a portfolio. We work extensively with each client to establish a portfolio mix that meets their individual risk/reward profile after a careful assessment of financial goals, short and long-term cash flow needs, investment time horizon, and tolerance for market volatility.