Active Portfolio Management

We invite you to discover the

Decision Difference.

Our investment philosophy is a cornerstone of our service, setting us apart in the industry. Our active asset allocation strategy is designed to capture gains in favorable market conditions and reduce exposure in unfavorable ones, a principle we implement through “Tactical Asset Allocation.” Unlike a “style box” approach that restricts flexibility, Tactical Asset Allocation allows us to capitalize on opportunities and mitigate risk.

We make portfolio adjustments based on current market conditions, not some predetermined rebalance calendar. When our risk indicators get high, we get defensive and move to Wealth Preservation mode. Conversely, when these indicators are low, we take a more offensive stance and move to Wealth Accumulation mode. The Decision Difference is that our Investment Philosophy is designed to manage risk in all market conditions. The chart depicts how challenging it is for investors to make up losses.

Advance Required
to Breakeven

Too many investors lose sight of the impact a bear market can have on your investments and, ultimately, your goals. It’s crucial to know you don’t need to equal or outperform the market during positive years if you can protect your capital during the downturns. While Modern Portfolio Theory suggests that a diversified portfolio can limit risk through diversification alone, the 2008 financial crisis demonstrated that diversification may not suffice when correlations between asset classes are high.

For many asset management firms, performance is often graded on a curve. For example, if the S&P500 index is down 40% and they are down 35%, they score good grades. That may fly for the assets of large institutions, but it is our goal to protect the hard-earned money of our clients in absolute, not relative, terms. You can’t eat or retire on relative returns in sideways and down markets.