INVEST
HOW WE MANAGE YOUR CAPITAL
We design portfolios with a focus on long-term growth and security. We center your portfolio around 3-5 key investment themes that we believe will perform well over time. Our primary goal is to structure your portfolio to maximize liquidity, ensuring that your assets are readily accessible when needed.
To manage risk, we prioritize investing in high-quality assets, viewing other options as speculative. Our firm strongly believes in the power of active management. Therefore, we only utilize index funds when an active investment isn't available for a specific theme, ensuring that you are not charged active management fees for passive investments.
For clients with higher net worth, we may introduce private investments to further diversify your strategy. Additionally, we employ insurance on a case-by-case basis as a tool to transfer risk, providing an extra layer of protection for your portfolio.
Liquidity Management
Our liquidity management Centered around investing primarily in the most liquid global markets. We focus on liquid investments such as public equities, treasuries, municipal bonds, investment-grade corporate bonds, and commodity futures, utilizing liquid structures like Separately Managed Accounts (SMAs), Exchange-Traded Funds (ETFs), and occasionally Mutual Funds (MFs).
For illiquid investments, which include private companies, real estate, junk or emerging market bonds, and structured credit, we employ illiquid structures such as hedge funds, interval funds, private equity or debt, and Real Estate Investment Trusts (REITs).
Risk Management
We concentrate your primary portfolio in high-quality names with robust balance sheets, steering clear of speculative investments such as cryptocurrencies, meme stocks, and junk bonds. If you have a desire for exposure to speculative investments, we facilitate this through hedge funds or private equity.
To maintain your portfolio allocation, we perform periodic rebalancing. Additionally, we may employ insurance to mitigate the risks associated with early death or disability, and annuities to safeguard against the loss of guaranteed income.
Investment Management
We seek out portfolio managers with distinctive stories and unique investment processes— those who we believe possess an edge that will enable them to outperform their benchmarks. These managers typically operate boutique, independent firms and oversee smaller pools of capital, ensuring they remain agile and can close their funds if they grow too large to manage effectively.
We prioritize managers who demonstrate conviction in their investment theses and exhibit the patience to see their strategies through. Our goal is to partner with those whose size does not impede their ability to generate strong investment returns.
Diversification
At our firm, we approach diversification with a unique perspective. It's not merely about the quantity of investments; it's about the variety. We diversify across multiple asset classes, including public and private equities and debt, commodities, and real estate. Additionally, we diversify the structures of our funds, utilizing SMAs, ETFs, mutual funds, hedge funds, managed futures, private equity and debt, and REITs.
Our approach also considers liquidity, balancing liquid and illiquid investments, and risk, mixing high-quality and speculative investments. Furthermore, we diversify our strategies, incorporating top-down and bottom-up approaches, fundamental and technical analyses, qualitative and quantitative methods, as well as public and private investments. We believe that an S&P 500 index fund, despite holding 503 names, does not offer true diversification due to its concentration in a handful of stocks. Our philosophy is that genuine diversification comes from a broad mix of investment types and strategies.