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Investment Philosophy

Our investment philosophy is based on five key concepts for financial success--concepts that we believe keep investors (and their investments) on track to reach their financial goals. These include:

Leverage Diversification to Reduce Risk

Much more than simply reducing risk by "not putting all your eggs in one basket," effective diversification helps take the emotion out of the investing process and provides balance that historically helped dampen market volatility. We apply the following discipline:

  • investing among a variety of industry sectorsrather than just individual companies, as well as across a number of different asset classes.
  • building portfolios that include a select mix of U.S.-based and oversees investments to create significant opportunities for growth.
  • ensuring employee stock is leveraged to balance capital gains tax with long-term risks and benefits.

Please note: Diversification does not guarantee a profit or protection from losses in a declining market.

Seek Lower Volatility to Enhance Returns

It is a mathematical fact that portfolios with less volatility have higher compound returns. As a result, two equal investments with the same arithmetic rate of return will have ending-values that differ (sometimes greatly) based on their individual volatility. We strive to design portfolios that deliver a lower beta, a higher alpha, and the lowest possible overall volatility over our client's stated holding period(s).

Employ Asset Class Investing

An asset class is a group of investments whose risk factors and expected returns are similar. In the past, institutional asset class portfolios were available only to large pension plans and the wealthiest individuals. However, we make institutional portfolios accessible to you, aiming to provide lower operating expenses and lower portfolio turnover, which results in lower costs and taxes. We believe asset class investing is an important tool in many portfolios and a valuable alternative to actively managed investments.

Design Efficient Portfolios

Our job is to maximize the probability of achieving your financial goals by building portfolios that have the highest possible return with the appropriate level of risk based on your needs. Modern Portfolio Theory is a mathematical discipline to define the optimum combination of investments that will give the highest rate of return for every level of risk. Using this methodology, we're able to create portfolios that historically showed the same rates of return with less risk, or higher rates of returns for the same level of risk. While there is no guarantee that past performance will be repeated, we apply prudent judgment in combination with the lessons of investment history to decide how to structure your portfolio.

Income Distribution Strategies

While accumulation of assets is vital to your financial success, distribution of those assets presents a very different but equally important challenge. To help protect your assets and provide necessary long-term income, we carefully review your assets and create a highly personalized and tax-efficient income distribution strategy to meet your needs. To create the most effective strategy, we consider the long- and short-tem tax implications of each asset class based on its specific registration (Roth, IRA, trust, etc.). We then determine the most logical distribution order and schedule to help provide a predictable and appropriate stream of income over the long term.


Read our guide on how to gain financial confidence and pursue your life’s goals.

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