Investment Policy Design
- Customized portfolio approach – each client has a unique risk tolerance, time horizon and spending requirement, therefore each portfolio is different and customized with these factors in mind.
- Active management works, but we also utilize passive or index strategies in the absence of alpha opportunities in certain asset classes.
- Costs matter; we seek to minimize management and trading fees, evaluating managers on a net of fee basis and negotiating fees when possible.
- We prefer concentrated, active managers and often avoid active managers who manage to an index or “hug” a benchmark.
- Holistic approach to manager selection; managers are not evaluated in isolation, but must be complementary to the entire portfolio.
- We will occasionally make tactical asset allocation recommendations for opportunistic or defensive reasons, but the Investment Policy Statement will always govern the allocation and allowable ranges.