RESEARCH

Due Diligence

The funds and money managers that we employ on behalf of our clients to manage each asset class, or type of investment to be invested in for a client's portfolio is selected as a result of a comprehensive due diligence process to seek out the very best money management talent available. The firm partners with a number of different resources that perform the research necessary to accomplish this.

As the due diligence process is intensive, explanation of the details is covered individually with each client. Portfolio construction is guided by the firm’s underlying investment philosophy comprised of four core principles:

1) Diversify — Successful investment plans depend on diversification. Diversification is about limiting extreme short term fluctuations and portfolio volatility. We strive to reduce risk and volatility by allocating wealth across a variety of different, less correlated asset classes and across investment products with varying management styles. Portfolio diversification also provides continual exposure to outperforming investments as asset classes and styles move in and out of favor.

2) Focus on the Long Term — For most asset classes, even high risk/high reward ones, the positive performing years outnumber the negative years. Maintaining a long-term horizon affords greater risk tolerance and the opportunity for assets to grow through compounding. Excessive concern about short-term market results is incompatible with achieving long-term results.

3) Act Contrarian — Too often investors undermine results by chasing short-term performance. We believe that a contrarian stance increases the probability of long-term success. Taking a contrarian approach to asset class valuations reduces the risk of buying at a cycle’s peak only to be undercut by the inevitable correction.

4) Be Prudently Aggressive — Inflation, not volatility, is the greatest threat to purchasing power and financial security. Abandoning the price fluctuations of stocks and bonds in favor of cash-equivalent investments may seem like a safe path, but is unlikely to achieve financial and life goals. Risk is the necessity to transform savings into wealth. Success lies in taking risk when it is prudent and managing risk when it is possible.