About Wealth Management

“Diversification is the conscious decision not to make a killing in order to not get killed.” Our typical client no longer has a need to “hit the homerun”, but more appropriately sizes the risk they take with the returns required to achieve their very personalized set of goals. Our philosophy begins with a key question, “How can we reduce portfolio risk while delivering goal satisfying growth and income?”

Navigating the complexities of the financial markets seems to get more difficult and confusing each year. With an overwhelming number of articles, books, talk shows, and get rich quick infomercials bombarding our senses, our role as investment advisors is to organize, digest and formulate personalized wealth plan blue prints in order to coordinate and synchronize our clients’ complex financial pictures.

A normal wealth plan will consist of traditional stock and bond investments (known as the Core Portfolio). This Globally Allocated Core Portfolio is built to reflect the investor’s tolerance for risk in light of the need for returns to achieve their goals. Our overarching goal is to deliver portfolio returns with a smoother investment ride to reduce potentially harmful emotional decisions during short-term market volatility. A significant amount of time is spent on extending the life of the investment portfolio’s ability to fund pre- and post-retirement life styles. In addition to the normal stock and bond portfolio, a key component to our work introduces alternative, absolute return investments including hedge funds, managed futures, real estate, oil and gas, currencies, and hard assets otherwise named Satellite Investments. This Satellite Portfolio further assists in providing additional streams of investment returns NOT dependent on stock markets for economic returns. The introduction of this component improves the “all weather” ability of the aggregated wealth plan to generate returns from investments substantially isolated from financial markets’ see sawing volatility.

The grandfather of Modern Portfolio Theory, Harry Markowitz, advised investors in the 1950’s to diversify their investments across available asset classes. Today’s asset allocated portfolio of stocks, bonds, and cash only expose investors to a small part of today's investable universe. Our recipe of Core to Satellite methodology is intent on delivering a substantially more diverse portfolio of economic returns in order to provide a smoother investment ride, more consistency, and increased resilience during market turmoil*.

 

*Please note that diversification does not assure a profit or protect against loss in a declining market.