Aligning your portfolio with your life.
We have been managing our client's investments for more than 25 years. As fiduciaries, we follow a defined process in managing the portfolio holdings to maximize the risk-adjusted return for each portfolio.
Before we begin building your portfolio, we will talk about your plans for your money. Key information we will want to know and talk through will include:
- Your specific goals for growing your wealth.
- Your cash flow and income needs.
- Your personal risk preferences and tolerance for market volatility.
- Your time frame (defined by all the above and your age).
- Additional objectives that are important to you. For example, you may wish to incorporate sustainable or ESG investing into your investment criteria.
If you have a financial plan in place, we will review the information to be sure it is current and then move forward to align your investments with your plan.
There are pillars of our investment philosophy that will apply to all portfolios we manage.
Portfolio Strategy and Implementation
In deciding how to invest, we consider the 3 major investment styles, each of which has defining characteristics, in making our security selections.
- Active management & Passive Management
- Growth Investing & Value Investing
- Market Capitalization
- Asset allocation refers to the mix of asset classes (stocks, bonds and cash) held in the portfolio.
- Many times, the markets for these asset classes do not move at the same pace or in the same direction.
- Asset allocation is important. Over time, a portfolio’s asset allocation has been shown to have a greater effect on return and volatility than the securities within the portfolio.
- Having the right mix of securities can add potential return to the portfolio while also decreasing risk through diversification.
- Although not technically accurate, it may be helpful to think of publicly traded sectors as containing companies that are in the same industry.
- There are funds and ETFs that are composed of securities from a sector or group of sectors.
- There are 11 sectors grouped into 3 categories.
- Cyclical stocks
- Sensitive Stocks
- Defensive stocks
- A target allocation will be established for investing in domestic and international stocks.
- This provides additional diversification and exposure to currencies as a factor.
- We utilize Bond funds that employ passive and active management.
- We invest in both diversified and specialized bond funds. This allows us to select managers with different styles for different bond sectors.
Portfolio monitoring & maintenance
The investment team follows a defined process to monitor and evaluate the portfolios and their holdings on a daily, weekly, monthly, and quarterly basis, as well as continuously assessing current market and economic conditions.
We will make adjustment(s) to the portfolios we manage based upon a quantitative analysis of our positioning vis-a-vis market behavior. Rebalancing will take place to maintain the appropriate asset allocation in each account. In addition, we monitor your portfolio by having regular meetings with you and making adjustments based on your needs, goals, and market conditions.
Reporting and Trading Technology Tools
Black Diamond Wealth Platform
Blaze Trading System
Fact Set Investment Research
Morningstar Advisor Workstation