CONSISTENT DISCIPLINE AND RISK MANAGEMENTFinancial Discipline

  • Utilizing numerous analytical tools and frameworks:
    • Annual potential loss – traditional market environments
    • Liquidity risk, business model risk and transparency risk
    • Risk in different market environments
    • Factor allocation –  Beta (market exposures) vs. Alpha (active portfolio management)
    • Risk-adjusted return – how much return per unit of risk
    • Return distribution and correlation – how asset classes and managers interact
    • Stress testing, drawdown and down capture ratio – worst case scenarios

RIGOROUS MANAGER OVERSIGHT

  • Adherence to style (avoid style drift)
  • Performance attribution
  • Effectiveness of active vs. passive management

IN-DEPTH PORTFOLIO REVIEW

  • Review individual portfolios for suitability and adherence to personal investment policy, goals and objectives
  • Adjust portfolio to reflect changes in unique circumstances, goals or needs

MITIGATING DOWNSIDE LOSS POTENTIAL

  • Use of various alternative asset classes or cash equivalents to dampen the effects of volatility on a portfolio and mitigate downside risk potential
  • Often, losses are difficult to recoup and can adversely affect your long term well being

EFFECTIVE USE OF INSURANCE

  • We do not sell insurance, but we understand and embrace its use in preserving assets
  • Insurance should not be viewed as an investment, but rather a tool to reduce and share risk exposure —  use a hammer to drive a nail, use insurance to lay off risk