Strategy Overview

The key to designing a successful investment portfolio is having assets with different risk characteristics or low correlations.  Assets and asset classes have become more highly correlated over the last 10 years.  As the world economies have become more intertwined, the performance of those international markets has been very similar.  In other words, it’s been very difficult recently to properly diversify investment portfolios using non-U.S. holdings.

Our focus is to create an investment portfolio that has more consistency over time and is characterized with a lowered Standard Deviation.  We strive to create the best risk-adjusted returns possible and that is measured by the Sharpe Ratio.  This statistical metric takes into account not only a portfolio’s performance, but, as important, its volatility or Standard Deviation.  It gives us a great way to compare portfolios side by side.

We have to design and manage investment portfolios that have better risk-adjusted performance metrics than the overall market.

To view our Portfolio Management Summary click here.