This firm’s central belief is simple: Investing is allocation and execution. We hold that the allocation of a client’s portfolio is the controlling factor to the future return and risk of that portfolio. Regardless of the merits of any individual investment, the best fund in the wrong asset class is a losing proposition for our clients. More than anything, our goal is to allocate our client’s funds correctly across the global range of asset classes, without bias or preconceived notions as to what a portfolio “should” look like. We select asset classes for their perceived strategic or tactical value and limit our exposure to those asset classes we feel are dangerously overvalued or structurally designed to fail the expectations of our clients. Investing every allocation we make then becomes a matter of execution.
In the execution of any allocation we believe there are four factors within our direct control and should not be subject to external market forces beyond our control: Taxes, Fees, Liquidity and Transparency. Investments we make that adhere to these four factors, and remain tax- and fee-efficient, liquid and transparent, in our opinion, have the best chance of long-term success and meeting our clients’ expectations. It is also our job within the execution of a portfolio to hold to the courage of our allocation research and actually make changes to our clients’ portfolio in response to market and personal information. This sounds simple and implicit. It is not. Too often, we review external static portfolios that rarely change over time regardless of market conditions or client evolution. We are paid to manage our client’s portfolio through their constantly changing lives and changing markets.
The last piece of the investing philosophy for this firm is our proud allegiance to independence and investment “agnosticism.” We have no internal products nor do we maintain any fiduciary ties with any outside investment advisors. We hire, fire, buy and sell only what we feel are investments, in whatever form, that meet our beliefs and our clients’ goals. Finally, we are not paid academics; we are not locked into one side of a debate. We implement any and all investments for our allocations – active, passive, separate account, mutual fund, exchange-traded fund, hedge fund, etc. – that best serve our clients. We are paid to manage money, not engage in hypothetical research.