Our investment process is a multi-layered investment discipline that combines both strategic allocation and tactical allocation that results in greater portfolio stability and higher potential for favorable performance.

We believe that in order to successfully implement a sound financial plan, you need an investment process which is dynamic and adaptable.  Our process:

  • Begins with your financial plan so we can identify the minimum risk required to achieve your goals
  • Continues with developing a strategic asset allocation that takes into account the current valuations across a multitude of asset classes
  • Integrates a rules based tactical approach to over and underweighting portions of the portfolio to manage and benefit from with shorter-term risks and opportunities
  • Uses a core set of investments which are low cost, diversified, liquid, and tax-efficient

The power of our investment process is that the performance of the portfolio does not rest on the success or failure of any single decision. Here’s why:

Strategic Allocation | A dynamic process where price matters

Our strategic asset allocation decisions are built upon a belief that markets are not a random walk – the belief that asset returns cannot be predicted because they move up and down randomly.

Price Impact

We believe that careful analysis of historical returns reveals a strong relationship between the price paid for an asset and the subsequent returns investors can expect to earn over the next 5-10 years. In fact, depending upon the asset class, we have found that between 60 percent and 90 percent of the variation in long-term returns can be explained by the price level of the asset classes at the beginning of the investment period.

Return Expectations

Because we believe that the price paid for an asset matters, our return expectations change as asset prices rise and fall. As a result, our strategic allocation models are dynamic and will change as our perception of long-term value in the market changes. We believe that the resulting asset allocation models provide a strong, long-term foundation for our investment portfolios.

Tactical Tilts | Incorporating price, economic and earnings momentum into asset allocations

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Tactical asset allocation is defined as a series of risk-controlled modifications to the strategic allocation based upon shorter-term opportunities and risks that are seen in the markets.
While strategic allocation determines where value exists in the market, tactical allocation builds upon this valuation framework by incorporating price, economic and earnings momentum into our asset allocation decisions.

The result, is a fine-tuned investment process that works to capture the greatest potential with a team that manages risk every step of the way.

Investment Selection | Low cost and Tax Advantaged Matter

We agree with legendary investor and Vanguard founder, John Bogle, that over time the expenses that you pay on the investments themselves matter…a lot.

We go to great lengths to choose low-cost, tax-advantaged vehicles as the core of your portfolio. We believe it’s nearly impossible to consistently predict which managers will consistently outperform their respective index.