our focus and philosophy
We focus on achieving superior risk-adjusted performance. Our approach is research driven. While our investment strategies vary according to the underlying holdings and risk levels, they are all the result of a rigorous portfolio construction process. We base our portfolio management process on the principles of risk/reward and relative value: we only take risks when they come with sufficient reward, careful not to chase returns at any cost. We adopt a highly disciplined view towards risk management.
the planning process
Our planning process is tailored to your personal situation. Our general guidelines for the financial planning process are as follows:
Step 1: Identifying and Prioritizing Objectives – We discuss your goals, concerns and needs to develop a clear vision of your financial future.
Step 2: Fact Finding – We request various documents for us to review and conduct a detailed risk assessment to learn more about both your willingness and ability to take risk.
Step 3: Analyzing – We will review your risk tolerance, current investments, tax concerns, unrealized gains and other important information while developing recommendations. We can consult with your tax professional in this step to gain a full understanding of your situation.
Step 4: Developing a Plan – we draft a personalized investment strategy, portfolio and financial plan for you after analyzing your information.
Step 5: Implementation – We act on the recommendations and changes suggested in your financial plan.
Step 6: Monitoring – We communicate to review your portfolio progress and re-evaluate your goals. As markets and circumstances are dynamic, it is important that your investment strategy is always in alignment with your goals.
research is key
We utilize institutional-grade research processes. We comb through historical financial data on the companies we invest in. We establish a clear understanding of business models, competitive positions, industry trends and future expectations. We also differentiate between good companies and good investments. In addition to the fundamental company information, we also analyze market sentiment, technical factors, insider activity and option market data to determine if a good company is also a good investment at a particular time.
Our process goes far beyond a mere asset allocation framework where a percentage of stocks and bonds are chosen. We look at historical and projected returns on a risk-adjusted basis which helps us to avoid taking unnecessary risks to deliver an expected rate of return. We keep a sharp eye on costs and avoid products that have high expenses. Our portfolios are naturally very low-cost as we utilize our investment expertise to choose securities that are either free to own or among the lowest cost products in the industry. This benefit is passed onto you as we can drive costs lower than other advisors that do not have the investment acumen to manage portfolios of individual stocks and bonds.
Our deep product knowledge of many complex financial products helps us avoid pitfalls and losses. Oftentimes, the worst financial products are sold or recommended to individual investors who are not savvy enough to understand their risks, costs, and potential for losses. And that is unfortunate because the advisors themselves are not aware or skilled enough to understand how a complex financial product really works and they unknowingly push risky products into their clients’ accounts, that more sophisticated investors would not invest in, only to experience losses later that could have been avoided.