Investment Approach

We employ various investment strategies for our clients depending upon their unique situation, time horizon, risk tolerance, risk capacity and goals.  These strategies range from a balance of passive and active management to 100% passive management.   For a significant number of our clients we utilize a Core & Satellite investment strategy, as described further below.   

Core & Satellite Investing

We utilize a Core & Satellite approach to equity investing.  Core investments, comprising about 70% of equities in client portfolios, are chosen to track specific benchmarks using a passive approach.  Satellite investments, comprising about 30% of equities, are more active in their approach and seek to beat (add alpha) their benchmarks. 


Why we use the Core & Satellite Approach

We use the Core & Satellite Approach because we believe that its merits are well supported by academic research.  Certain markets, such as the market for US domestic large capitalization stocks, are highly efficient and make it difficult to achieve returns in excess of overall market returns.  Other markets, such as small capitalization stocks, emerging markets, real estate, alternative investments and fixed income tend to be less efficient.  They are less efficient for various reasons, but primarily because there are far too many investment opportunities in these markets for professional investors to research and monitor them all.   


Other attributes of our Investment Approach 

Investment Allocation - Through lengthy discussion, a financial questionnaire and a risk tolerance questionnaire we gather information so that we can understand your risk tolerance, time horizon and life goals.  For each client, we are then able to construct a unique allocation across equities and fixed income. 

Portfolio Construction - Once we understand the overall equity and fixed income allocation, we construct your portfolio using a combination of mutual funds and ETFs (exchange traded funds).  In certain circumstances we will use individual bonds, rather than bond mutual funds.  For those clients transferring individual stocks with significant embedded capital gains, we  construct the portfolio around these stocks in an effort to achieve tax efficiency. 

Rebalancing - We rebalance client portfolios annually, or at a time of significant change in the financial markets or personal circumstances.

Uniquely Tailored Portfolios - We tailor each portfolio to meet our clients’ specific goals and needs.