client needs drive our portfolios

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Broad Perspective. Finite Focus.

We look at investment and portfolio management differently than most wealth managers. While our research and strategies are broad in scope, our acute focus is on building portfolios that sustain the unique priorities in each of our clients’ lives. Our investment philosophy is founded on data and evidence. The evidence demonstrates that investment success is a function having the right asset allocation (for you), keeping costs low, being thoughtful about taxes, and making informed decisions that align with your financial and life goals. That is our method, and you are our focus.

Take Command, but Let the Market Work for You

Active management has its place; we just haven't seen any evidence that justifies the use of higher-cost, less tax-efficient portfolios in the majority of asset classes. Rather, the evidence demonstrates that the mix of investments, or asset allocation within the portfolio, is the leading determinant of success. Investors are better off getting the asset allocation “right” in the most efficient manner possible. We leverage our experience from working with high net worth families and institutions across the country to empower an innovative process we call Objective Asset Allocation. It all starts with defining what is most important to our clients, and then building portfolios designed to maximize the probability of realizing those goals.

How You Become the Strategy

We take an elevated approach to wealth management by establishing objectives, planning the strategy, and minimizing risk. Wall Street may define risk as volatility, but 7258 defines risk as the possibility our clients fail to achieve their objectives. With this in mind, we tailor our solutions and construct separate portfolios for each of our clients and their goals. We make all of our decisions based on rigorous research, and our clients benefit from the healthy skepticism we maintain on their behalf.

 
 
Our Philosophy

Philosophy

  • Individual client objectives drive the construction of our portfolios; we consider time horizon, liquidity, legal structures, tax status, unique circumstances, and relative importance of the family’s goal(s).
  • Disciplined asset allocation and dynamic rebalancing make a difference.
  • Global diversification provides access to opportunities in multiple markets and may reduce portfolio risk.
  • The joint impact of taxes and costs is significant.
  • Inflation erodes purchasing power; the longer the time horizon, the greater the magnitude.
  • We will use lower-cost, more tax-efficient portfolios in the majority of asset classes most of the time; however, we may use active managers selectively.

Implementation

  • Public equity markets are mostly efficient; therefore, we focus our time getting clients access to the right markets in the right proportions.
  • Bonds provide critical protection in our client accounts. We are reluctant to take credit and term risk, but may do so in a measured way when market/economic conditions provide opportunity.
  • Inflation-protected securities are important tools for vital, longer-term client objectives.
  • We think of alternative investments (hedge funds, private equity, venture capital, commodities, and direct real estate) in the same way we think of active management.  There may be a place for them in client portfolios, but they are the exception, not the rule.

 

 

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