Investment Philosophy
While our wealth planning process is the cornerstone of our practice and client relationships, our investment philosophy and client care commitment are equally rigorous and comprehensive.
We assist our clients in constructing a well-diversified portfolio that is tailored to their individual goals and objectives. Our approach considers each family’s feelings, financial situation, tax considerations, risk tolerance, and stated goals – while providing in-depth capital markets analysis. Key tenets of our philosophy:
Keep it Simple
After over 20 years in the financial services industry, we have learned that complexity is not needed for investment success. Wall Street thrives on complexity. We lean towards simplicity. Understanding what you own and why you own it is important.
Less is More
Activity should be kept to a minimum. We advocate quarterly rebalancing and occasional stop orders for downside protection. Otherwise, we seek lower portfolio activity, not higher.
Quality is King
Holding high quality assets tends to pay for itself over time. High quality stocks. High quality bonds. High quality managers with strong teams and track records through full market cycles. There is no substitute for quality. When and where we add lower quality assets, the risk reward must be compelling.
Liquidity is Key
With complexity typically comes illiquidity. We value liquidity. Liquidity helps clients sleep well. Liquidity allows for optionality –i.e. the ability to add cash to quality investments when prices fall. While we generally avoid illiquid investments, we recognize that all clients have different needs. We will allocate capital to illiquid assets when the risk/reward is compelling and it fits a client’s investment goals and desires.
Diversification is Important for Wealth Preservation
Different investment assets and asset classes perform at different times. We build portfolios using multiple asset classes in diverse amounts depending on the current economic and market environment. These include stocks, bonds, cash, and real assets.
Minimize Losses
Markets don’t always go up. When we must endure downside volatility, we seek to raise cash and wait for a better day. Minimizing downside volatility is a key to investment success.
It’s Never Different This Time
Investment fads come and go. It’s never “different this time.”
Track and Invest Alongside the “4 Horsemen”
We’ve identified the 4 horsemen of investing as: Fundamental Conditions (Market and Economic), Technical Conditions (Charts), Sentiment (Commercial Investors, Traders, Retail), and Policy (Fiscal and Monetary).
Investment Process
We follow a disciplined process to determine the optimal allocation for a family, as well as the investments needed to implement that allocation. The result is a portfolio that reflects the needs, wants, and risk tolerance of each family we serve. In addition, the portfolio is fully reflective and integrated with your entire wealth plan.
Personal Interview & Identifying Goals
Identify goals and aspirations
Discuss financial resources in light of your current plan
Profile professional goals and risks
Gather documentation and statements
Discuss past investment success and failure
Review 13 wealth planning essentials
Portfolio Construction/ Asset Allocation
Review income goals and risk tolerance
Test portfolio against your goals (Monte Carlo Analysis)
Run multiple plans and scenarios
Determine the “ideal” plan and allocation. “Ideal” equates to the highest probability of success with the least amount of volatility
Asset Allocation Implementation
Implement the plan and allocate the portfolio assets
Discuss the “Core” Allocation, and consider “Tactical” Allocation as Opportunities Arise
Customize the portfolio to the client’s situation. (Review current assets and ensure there is no overlap)
Be aware of tax consequences and timing issues
Discuss our macro view of the economy and markets
Ongoing Monitoring & Reporting
Ongoing Monitoring & Reporting
Quarterly Reviews
Black Diamond Reporting
Wealth Allocation Framework
Wealth Compendium™
Incorporate the Wealth Compendium® into Reviews
Family Meetings
Client Care
In keeping with our philosophy, we understand the value of providing our clients with a nuanced perspective on the events of the day and their impact on the markets and larger economy. In 2008, at the height of the financial crisis, we launched the Morning Roundup, a daily communication designed to keep you informed about what happened to the markets in the previous 24 hours, and we defined the tenets of our investment philosophy and client care commitment.
9045 Strada Stell Ct
Suite 303
Naples, FL 34109
Office: (239) 330-3040
Fax: (239) 236-1610
Toll free: (888) 780-9777
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