Investment Strategy
Ø Our investment strategy begins with a review of the overall economic, political and financial marketplace and the broader asset classes of equities, fixed income, cash equivalents and alternative investments. Based on our intermediate and long-term expectations for each asset class, we assign recommended holding percentages for domestic equities, international equities and alternative investments. In addition we will define the asset classes, credit quality, and maturities for the income portfolio. Ø We then review our expectations of the various sub-asset classes within each asset class. Domestic equities are evaluated by their capitalization (large, mid and small companies) and investment styles (value and growth). International equities are evaluated by the same criteria, as well as geographic regions. Income asset classes are reviewed by maturity, tax status, credit quality, equity-income hybrids, as well as domestic versus international allocation. From these evaluations, we can strike the optimum balance of risk and return for the intermediate and long-term outlook. Ø After the strategy is defined the tactical aspect of the process is implemented. Managers or individual securities are chosen for each asset class. Our decisions are based on the management firm’s culture and experience, adherence to their discipline, fee and tax efficiency, as well as risk/return characteristics. There are literally tens of thousands investment opportunities available. Our research results in choosing less than 25 of the highest quality investment mangers in the world. Ø We continually review our investment policy, manager selections and your portfolio through our established criteria and unique disciplines. This means a diligent, consistent and focused approach as applied by our extensive reading and regular investment committee meetings, as well as conference calls and onsite visits with companies and managers we have included in your portfolio. Though infrequent, thoughtful and timely changes to the strategic allocation or mangers are necessary. In addition, market volatility will necessitate rebalancing your portfolio to assure your assets are maintaining the desired risk level and their growth potential are optimized. In today's world there exists a wealth of data, information and knowledge, but a poverty of focus and wisdom. As a team of investment professionals, our aim is to develop a greater level of wisdom about the financial markets and to translate that into workable and profitable results for our clients. In a business where annually compounding your capital 2% more over 25 years will create 60% more capital, our significant experience has validated that our decisions and actions will create meaningful and significant changes in our client’s lives.
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