Our portfolios combine active and passive investment approaches in an effort to beat market returns while lowering volatility and keeping expenses low.
We focus on the net return our client’s will receive; that is, after fees and taxes.
We exploit the beneficial tax treatment of different asset classes by allocating portfolios at a household level, rather than an individual account level. We also practice tax loss harvesting in after-tax accounts to further reduce tax impact.
In seeking to reduce risk, we favor funds with reduced volatility and downside exposure (aka ‘downside capture’). Our portfolios are constructed to maximize liquidity with nearly all positions being tradable on an intraday basis.
In efficient markets we choose low-turnover, low-cost, factor-tilted passive funds and in inefficient markets, where detailed knowledge and manager skill can bring added value, we may employ active management.
Research shows that asset allocation determines most of the return dispersion in a diversified portfolio. Minor tactical portfolio shifts are considered for a portion of the allocation when market valuations create compelling opportunities.
Seeks to passively gain exposure to underlying return drivers such as value, size, dividend, quality and low-volatility.
Modern portfolio theory (MPT) has borne out the value of asset allocation and diversification. We include alternative asset classes to further enhance diversification in an effort to smooth and enhance returns.
Investors combine different kinds of assets in portfolios to reduce volatility and improve risk adjusted returns. The core equity and fixed income holdings comprise the majority of each portfolio with a range of alternative investments comprising the satellites. Portfolio composition and weightings vary depending on investor circumstances.