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HOW WE DO IT

INVESTMENT PHILOSOPHY

Integrity, competence, and unrelenting devotion to our clients’ best interests
drive the way we think.

CLIENT FOCUSED

Before taking action, we get to know you and what’s important to you. We then develop an investment strategy tailored to your needs and personality. We execute the strategy from an open universe of securities and investment vehicles that includes individual stocks, individual bonds, mutual funds, exchange traded funds, separately managed accounts, and alternative investments such as hedge funds and limited partnerships.

INDEPENDENT RESEARCH

We make investment decisions based on in-depth due diligence using various resources including corporate filings, independent third-party research, industry contacts and proprietary models. Through disciplined analysis and critical thinking, we endeavor to achieve better outcomes for our clients.

DIVERSIFICATION

We believe clients are best served by holding globally diversified portfolios consistent with their investment objectives, risk tolerance, and time horizon. Historically, diversification across non-correlated asset classes and geographies has resulted in reduced portfolio volatility and better risk-adjusted returns. Broadly speaking, we emphasize risk minimization over maximizing investment returns.

PROMOTING RATIONAL BEHAVIOR

Industry data has shown that the average mutual fund outperforms its own investors by a wide margin. This discrepancy reflects the inability of many investors to remain committed to a long-term plan, especially during periods of heightened uncertainty and market volatility. We strive to mitigate this behavior by constructing portfolios for our clients that consider both their financial capacity and personal tolerance for risk throughout market cycles.

LONG-TERM FOCUS

We have a low turnover bias and a long-term time horizon. While asset allocation and security selection are the underlying drivers in the decision-making process, we’re mindful of the costs and tax implications associated with portfolio management decisions.

INVESTMENT PROCESS

A disciplined and thoughtfully constructed process of analysis, execution, and monitoring drives the way we implement our clients’ investment strategies.

EQUITY SELECTION

We are defensive, long-term investors. When we purchase individual securities, we seek high-quality businesses run by capable managers at reasonable valuations. High-quality businesses are those which generate high returns on invested capital and achieve outsized intrinsic value growth. Our individual equity portfolios offer sufficient diversification to minimize unsystematic risk while still enabling our best investment ideas to have an impact on returns.

FIXED INCOME SELECTION

We employ a disciplined approach that emphasizes investment in high quality bonds. Our investable universe includes treasury and agency securities, municipal bonds, certificates of deposit, treasury inflation-protected securities, corporate bonds, sovereign debt, and other short-term fixed income securities. The allocation consists of a mix of individual bonds and funds. We select the appropriate vehicle based on trading costs, liquidity, and client specific considerations.

MANAGER SELECTION

Mutual funds and separately managed accounts (SMAs) with differentiated strategies can add value via risk reduction or outperformance over market cycles. We invest when we have high conviction in the manager and their investment process. We work to identify managers with a demonstrated track record and a repeatable investment process.

TRADING AND IMPLEMENTATION

We believe that efficient and timely execution of trades for clients is critical to the success of our investment process. Effective idea implementation ensures portfolios are aligned with the conclusions of our investment research.

CLIENT REVIEW MEETINGS

We have regular client review meetings to discuss asset allocation, performance, market conditions, and any other pertinent issues or developments in our clients’ situation that affect portfolio composition. We also address broader planning topics that are important to clients. We strive to maintain an open and transparent relationship that focuses on meeting client’s long-term goals and objectives.