Our investment process starts by developing a strategic wealth plan that identifies the client’s financial, family, and professional goals. From that point, we take a risk-based approach to building out custom investment strategies and portfolios for our clients. Our process helps educate clients on not only the appropriate amount of risk that they should take with their investments but also how that capacity for risk impacts their investment returns over time. Our goal is to reduce the amount of risk in our clients’ portfolios while providing them the returns they need in order to achieve their goals. We believe that the client’s investment portfolio needs to support their financial plan—not the other way around.
How We View Risk
We view risk for our clients in two ways. The first is the risk that our clients will not achieve their financial goals, and as a result, not be able to live the life they want. This looks at things such as whether or not they’re saving and investing enough money, their budget and spending patterns, and if their assumptions and expectations are in line with reality. The second way we look at risk is from the perspective of their global asset allocation and investment portfolio. We ask questions like, “Is the volatility and risk inside the client’s portfolio in line with how much risk they’re comfortable with? Can the client afford to take on that much risk, or does it jeopardize their future plans? How can we reduce the amount of risk in the portfolio and still help them achieve their financial and life goals?” One of our primary goals when managing assets for our clients is to take on the least amount of risk and volatility while helping them realize their family, financial, and life goals.
Research & Math
Once we have developed the risk model for a client, we use a fundamental research approach to the selection of investments, positions, and strategies for the portfolio. We utilize academic research and math platforms to evaluate mutual funds, ETFs, individual equities, and bonds for our clients’ portfolios. Our analysis looks at both the performance of the individual security as well as how it fits into a client’s broader portfolio. We conduct a fundamental analysis using a macro top-down approach to analyze the different asset classes and then perform a bottom-up analysis on each individual security or fund in our clients’ portfolios. We are agnostic to current trends, fads, or the newest strategies being used in the market. We use math and macro data research to evaluate the historical performance of an asset and test assumptions about the expected return of an asset for future years.
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