Investment Management

I believe that everyone should understand the process and philosophy of their investments. I also believe in investing with a purpose. Your portfolio should represent your values and be tailored to what is important to you. 

Market Equilibrium

The market effectively enables competition among many market participants who voluntarily agree to transact. This trading aggregates a vast amount of dispersed information and drives it into security prices.

Given all information, a stock’s and bond's current price
reflects aggregate expectations about risk and return. 

 

Prices adjust when unexpected events alter the market’s view of the future. News travels quickly, and prices
can adjust in an instant.

Likewise, trying to anticipate the movement of the market adds
anxiety and undue risk.

When you try to outwit the market, you compete with the collective knowledge of all investors.

By harnessing the market’s power, together we put their knowledge to work in our client's portfolio.

 

 

Diversification

Concentrating in one stock exposes my clients to unnecessary risks. Diversification reduces the impact of any one company’s performance on our clients wealth.

Research shows there is no reliable way to predict top performers. Broad diversification helps reduce unnecessary idiosyncratic risk.

A well-diversified portfolio
can provide the opportunity
for a more stable outcome
than a single security.
 

 

Nobody knows which markets will outperform from year to year. By holding a globally diversified portfolio, together, we are positioned to capture returns wherever
they occur.

 

Dimensions of Returns

Using financial capital and other resources, a business produces goods or services that can be sold for a profit. As providers of financial capital, investors expect a return on their money.

Bondholders are lenders to a company.
Stockholders are equity owners in the business. Both expect an adequate return for the terms and risk of their investment. 

Risk is a complex concept—it is always present, even if it has not been realized, and it cannot be directly observed until it occurs.

 

The sources of return are directly observable, and decades of academic research have advanced our understanding of them.

 

Investors balance risk and return by incorporating their expectations and preferences into securities prices.

 

 

Investor Discipline

When people follow their natural instincts, they tend to apply faulty reasoning to investing. 

 

Often, investors may struggle to separate their emotions from their investment decisions. Following a reactive cycle of excessive optimism and fear may lead to poor decisions at the worst times.

Missing only a few days of strong market returns can drastically impact your overall performance.

A disciplined investor looks beyond the concerns of today to the long-term growth potential of markets.

I offer expertise and guidance to help my clients focus on actions that add value. This can lead to a better investment experience.

 

Style

It's important that my client's portfolio reflects their values, goals, and circumstances.

 

I specialize in Socially Responsible Investing and Socially Responsible Portfolios. The last part of my investment process is designing a portfolio with a style that fits you. They may include:

Social

 

Socially responsible investing (SRI) is an approach to investing that reduces exposure to companies that are deemed to have a negative social impact. 

 

Examples may be companies that profit from poor labor standards or environmental devastation—while increasing exposure to companies that are deemed to have a positive social impact, such as companies that foster inclusive workplaces or commit to environmentally sustainable practices.

Perform

 Research has shown that securities offering higher expected returns share certain characteristics. these characteristics must be sensible, persistent over time, pervasive across markets, and cost-effective to capture.

My Perform portfolio strategy reflects the underlying principles of a core portfolio strategy, while seeking higher returns. This is achieved by investing in funds seeking these specific characteristics, thus providing the opportunity to outperform relative to the portfolio's benchmark. 

Tax

In regards to equity (stock) positions, we hold mostly broadly-diversified funds that can cover an entire category to reduce turnover, and ideally those which take measures internally to further reduce tax costs.

In regards to our Fixed Income (Bond) positions, A diversified portfolio of government, corporate, and in this case municipal bonds should be expected to provide a total return greater than that of inflation. This portion of the portfolio may provide a haven in times of stock market stress, while providing the potential for tax savings.  

Cost

My traditional asset allocation strategy is a globally diversified portfolio comprised of low-cost stock and bond ETFs.

 

This portfolio is optimized across global stock and bond asset classes to help deliver the highest expected return for each level of risk. 

 

This portfolio provides exposure to US, International Developed and Emerging markets. Automated, tax-efficient rebalancing helps maintain exposure to optimal portfolio weights.