Investment Philosophy and Management ProcessWe believe that actively managing a portfolio’s asset allocation is the single most important factor in determining long-term performance. Our view is supported by a number of studies showing that approximately 90% of a portfolio’s long-term return is attributable to asset allocation. That means only 10% is attributable to individual securities selection.
We feel that the impact of asset allocation doesn’t just matter for the initial allocation. It matters for ongoing, proactive, top-down asset allocation decisions. The relative attractiveness of asset classes continually changes as economic and financial environments change. So we believe your asset allocations should change as opportunities and risks emerge.
It sounds simple – actively manage the portfolio’s asset allocation to take advantage of opportunities, avoid unnecessary risks and protect portfolio values. That’s what most investors want. Yet few advisors seem to be equipped to deliver. That’s because it requires a qualified team with extensive experience applying great effort and intensive forward-looking research.
This is where we feel we’re distinctly different. We have carefully built an investment team with the uncommon skills that we believe are necessary to make these critical asset allocation decisions. Sure, we skillfully identify outside managers to select individual securities. But more importantly, we start by looking from the top down at the right asset classes. Doing this well can have great impact on your portfolio’s performance, add meaningful value and provide a truly complete investment solution.