RETHINKING your investment approach

Traditional asset allocation models include equities, fixed income and alternative asset classes. Since 2009, investors have experienced the longest bull market in history. In addition, interest rates have been in a four-decade decline. Returns, especially in traditional fixed income, will continue to challenge investors.

The challenge with traditional asset allocation today is not the concept itself, it is the implementation and sizing of the investments inside of the allocation.

Rethinking equity
  • Evidence based investing. There are trillions of dollars invested in equity mutual funds that are all attempting to outperform their respective benchmarks. The results are clear. Over the last 15 years 91.62% of large cap, 92.71% of mid cap and 89.83% of small cap managers underperformed their respective benchmarks.*

*SPIVA U.S. Scorecard, 2019

Rethinking alternatives
  • Alternatives are typically defined as investments other than stocks and bonds. While the definition is broad, our focus is narrow. While not without their own unique risks, we believe there are opportunities for outsized, risk-adjusted returns in niche strategies, particularly where the managers have a deep knowledge of a business or market segment. The typical characteristics in these type of offerings are:
  • Active expertise
  • Improving investor behavior
  • Dollar cost averaging
  • Alignment of interests
  • Diversification
  • Not fully path dependent on stocks moving higher and bond yields moving lower to generate their returns

We have the experience and expertise to source these types of investments along with the platform to implement them.

When the information changes, we change our mind, sir. What do you do?

John Maynard Keynes
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