Broker Check

Investment Management

Client Centered

The cornerstone of our investment management philosophy is asset allocation based on Modern Portfolio Theory (MPT). It is widely accepted that asset allocation, not security selection, is responsible for 90% of the variance in portfolio returns.

Unfortunately, no single approach to asset allocation is right for all market environments. In addition to short-term cycles of boom to bust and boom again, the market also moves through long term or secular bull and bear markets, when deep rooted economic trends can dominate returns for many years, even decades.

It is critical to create an asset allocation strategy that matches your goals, risk tolerance and takes into account the ever-changing market environment. Our investment management platform offers three approaches, each with different strengths and focuses.

Asset Allocation Approaches:

Strategists are assigned to each category based on the role they play in the portfolio:

Core Market Strategies
Strategists maintain a consistent exposure to equity and fixed income around a baseline risk allocation.

Tactical Strategies

  • Tactical Limit Loss providers adjust equity exposure, sometimes significantly, to help limit losses in extreme down markets, while participating in up markets
  • Tactical Enhanced Return providers offer consistent market exposure to a specific equity market with returns driven from security selection

Diversifying Strategies

  • Diversifying Alternatives providers offer low or no correlation to equities, with high variability of returns giving larger impact to returns
  • Diversifying Bonds & Bond Alternatives providers offer low variability of returns, and in some cases, low correlation to equities