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Our risk-management investment approach seeks to protect and grow wealth.

Methodology - Main Content

Balanced Philosophy

We believe that it’s critical to defend against the devastating impact large drawdowns can have on the long-term growth of an investment portfolio. We therefore develop and implement investment strategies specifically geared toward our client’s unique investment goals as well as their tolerance for risk.

Strategy Diversification

Our approach is based on using varied strategies to help minimize downside risk. While each of our strategies has its own methodology, our main goal is to avoid large-scale losses. We believe that diversification across multiple risk-controlled strategies helps manage wealth for both performance and protection.

Risk-Managed Strategy

In attempting to avoid large losses, we utilize strategies that emphasize low correlation to broader volatile market activity, whether through hedged equity with the use of protective options, tactical strategies to dynamically adjust to market conditions, or other risk management practices.

Benefits of Strategy Diversification
  • Flexible portfolios that respond to changing market risks

    By partnering with experienced, innovative money managers, we can actively assess global market conditions and economic data to make real-time decisions based on market trends.

  • Diversified return opportunities with potentially lower volatility

    By actively managing to a downside risk threshold, we work toward limiting devastating losses. We believe this strategy gives investors the opportunity to experience better results through stronger compounding. (See figure below.)

  • Return potential regardless of market conditions

    We believe our investment goals reflect what many of today’s investors are seeking—a steady approach to generating returns while carefully navigating market turbulence. We seek to maintain this consistent, incremental approach.

Substantial Portfolio Declines Destroy
Compounded Returns

Figure 1: This graph illustrates the potential fallacy of emphasizing “percentage” gains and losses. Portfolio A had a +100% gain followed by a -50% loss. Portfolio B had a +65% advance followed by a -15% decline. Both portfolios had the same “net percentage” gain of +50%.

During the advancing periods, Portfolio A had a higher percentage gains (Portfolio A was up +100%; Portfolio B was up +65%). On the other hand, during declining periods, Portfolio B was able to limit its downward fluctuations to acceptable levels while Portfolio A could not (Portfolio B was down -15%; Portfolio A was down -50%). As a result, Portfolio B meets the primary goal of long-term investors be benefitting from “compounded growth”. Portfolio A saw its temporary gains evaporate because the large “substantial declines” destroyed the ability to achieve long-term compounding. 

This hypothetical example is for illustrative purposes only and is not intended to project the performance of any specific investment or investment strategy and is not a solicitation or recommendation of any investment strategy. It is only designed to show the mathematical differences between substantial declines and less substantial fluctuations. It does not represent the trading of any actual account. All investments and/or investment strategies involve risk including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives. Not suitable for all investors.

Methodology Graph

Don't confuse "percentage returns" with "dollar returns"

Portfolio A - Substantial Declines

Portfolio B - Acceptable Fluctuations

Strategy diversification is designed to mitigate drastic downturns so investors can take advantage of the benefits of compounding returns.