Improved investment outcomes.
Folks tend to focus on maximizing investment returns when the focus should be defining the performance which achieves the desired outcome.
If building a pick-up truck, you’d define the needed towing capacity before deciding on an engine. That logic applies to a portfolio.
We are intentional about constructing investment portfolios to structurally minimize volatility. We then add systematic tactical allocation, disciplined risk management and — in certain cases — financial leverage to enhance risk-adjusted performance.
The combination makes it possible to achieve investment goals with more precision. Our approach narrows the range of outcomes, minimizing downside without giving up too much upside.
Thoughtful portfolio construction can enhance the probability of achieving long-term goals by breaking an emotional behavioral cycle.
Shielded from the most harrowing drawdowns, an investor can stay fully invested, participating in unexpected rallies to generate long-term wealth.
Shallower drawdowns tend to leave a portfolio underwater for a shorter period of time, hitting a new high water mark sooner or giving more latitude in timing any needed withdrawals.
A portfolio designed to suit client risk tolerances reduces urges to act at the wrong time. Avoid the “panic sell” in turbulent markets and forgo the urge to take on more risk to “catch-up”.
Risk. Adjusted.