CONSISTENT DISCIPLINE AND RISK MANAGEMENT
- 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
