Investment Discipline

The heart of our investment process is working within an “investment framework” based on rational rules and fundamental analysis, helping to increase the probability in your favor to achieve greater financial success.

Our investment discipline takes into account both “short-term downside risk” and potential “long-term returns” and are implemented using the following three steps:

  1. Establish a Strategic Allocation. We identify a sensible strategic portfolio allocation that best matches a client's circumstances, objectives, and risk temperament, in which our research and historical experience is prudent. 
     
  2. Adjust to Tactical Asset Allocation. We adjust the “strategic” allocation by “overweighting” asset classes that are at “bargain” levels and “underweighting” asset classes that we believe are overpriced. 
     
  3. Complete a Scenario Analysis. We test the exposure of the alternative portfolio allocations to various downside risks and identify any adjustments that will enhance the risk/reward characteristics of your portfolio.

Our underlying investment discipline demands that all asset class overweightings and manager allocations be based upon a high level of conviction.

We believe that setting the bar high can significantly increase the probability of success over a market cycle.

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