Efficient Markets
- 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.
Risk vs. Return
- 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.
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.
Mandate
It’s important that a portfolio reflects your values, goals, and circumstances. Because of that, we have portfolios that align uniquely with your circumstances and passions.
BETA
Strategies in this mandate optimize the portfolios utilizing traditional modern portfolio theory, with an expectation that their portfolio returns coincide with the movement of the market.
ACTIVE
Strategies in this mandate are highly flexible and able to adjust for changing market conditions. Their active approach allows them to increase/decrease their exposure to market movement as their research dictates.
DIVERSIFIER
Strategies in this mandate are employed to disengage from market movement and provide new sources of potential return and risk. These tend to exhibit low correlation to the other mandates.
ESG
My ESG portfolios strategies are an approach to investing that reduce exposure to companies that are deemed to have a negative social impact and have a positive environmental, social and governance characteristics.
TAX AWARE
My Tax Aware portfolios strategies are designed for people whose key objective is to manage tax-liability. These strategies offer a strategically tax-efficient management approach in a broadly diversified portfolio.
