Our process for creating, managing, and monitoring investment portfolios is a process within a process. It exists within the wholistic approach we take with each client. We know a few financial facts. Stocks have outperformed every other asset class in the time since that data has been collected. We also know that each investor has different levels of risk tolerance. Plus, we know that each investment portfolio may have its own purpose unique to its owner.
To meet these demands of returns and risk we have sought to develop systems and processes that are flexible and efficient. This means having a system in place that is not so time consuming that it creates a “pecking order” of preferred client accounts. This allows us to provide the same high level of service to every client that uses our models, regardless of size.
Our models are risk based and trend following
We use four key models. Our investment models each represents a specific class of risk. Regardless of risk, the investments within the model are chosen based on a proprietary ranking system that let’s us know which asset classes (i.e. Large Cap Stock, Small Cap Stock, Intermediate Bonds, Real Estate, etc.) are trending higher. The system helps us determine if an asset class is in demand (more buyers than sellers) or in supply (more sellers than buyers).
Trends will change naturally over time. To adjust with the changing trends, we will adjust the model allocations and then rebalance each portfolio. Rebalancing helps us to maintain the intended level of risk while moving with, instead of against, the market trends. Rebalancing is completed the first week of each new calendar quarter.We have people!
Behind the scenes working for you are experienced professionals. However, it’s very likely you will never meet them or talk to them. Our fully integrated process is seamless to our clients. While you are working and doing the things you love to do we have people doing things like making sure a particular money manager has not drifted away from his mandate, or making calls to the Federal Reserve while analyzing the affects of government and interest rate policy on financial markets, determining the change in portfolio allocations, even maintaining the systems we use to help make financial plans.