Investment Management

If you’re looking for hot stock tips or trying to time the markets, we probably aren’t the firm for you. We don’t have a crystal ball or a magic wand, but we do tailor each client’s investment strategy based on their needs, goals, risk tolerance, and time frame. We use a five step investment management process rooted in the Nobel prize winning work of Harry Markowitz via Modern Portfolio Theory.

Setting the Investment Objective

This is the first and most basic step in the process. You investment objective will lay the groundwork to help identify your place on the efficient frontier- where we work to maximize the amount of return potential for the level of risk you’re willing to assume.

Establishing the Investment Policy

This is where we determine the appropriate asset allocation for each of your investment accounts. We review asset classes and sectors from small/medium/large capitalization equities, debt and fixed income securities, real estate, commodities, and foreign securities.

Selecting the Portfolio Strategy

This step combines the Investment Objective with the Investment Policy to create the framework for the overall portfolio. Here we will also incorporate specific restraints such as a tax efficient overlay or socially conscious tilts.

Selecting the Assets

Here is where the rubber meets the road. We begin to fill in each piece of your asset allocation pie. We will review active versus passive management as well as identifying each individual holding. In addition to our long term strategic allocation, we may evaluate incorporating a small amount of tactical or satellite positions based on recent trends or opportunistic viewpoints.

Evaluate Performance

While absolute performance is important, what we’re really looking for is progress towards your financial goals. We are cautious not to use short term performance as a gauge of long term success. We regularly review our investment portfolios relative to realistic benchmarks and internal standards.