The Investment Selection Process
In selecting investments, we believe the most important criteria is the management team. In short, we search investment data bases to determine which management team is most highly rated by the respective rating agencies. We believe this is the most likely indicator of above average investment performance. Beyond that, we utilize a twelve-step investment selection process.
We live in an uncertain world. We try to bring as much certainty as possible to the investment world by using the following twelve-step approach:
- Manager Search
- Manager Selection
- Set other Objectives, Values, Time Horizon, and Cash Flow
- Risk Tolerance
- Tax Sensitivity Goals
- Asset Allocation and Diversification
- Investment Policy Statement
- Stock Selection and Screening
- Overlap of Stocks
Our focus is to meet your risk and return objectives over the stated period of time pursuant to your goals and objectives.
Our objective is to put together an all-star dream team for you by finding the best investment managers and the investment mix that meets your requirements. We select and measure their performance. If they under-perform they are removed and we bring someone off the bench to replace them.
Finally, we then monitor their performance using quarterly performance reports to determine if we are truly meeting your objectives. However, we strongly believe that distribution is the most important phase of your investment life. So, we make sure that we can tell you how you will get your money out before we let you put your money in.
The role of your financial advisor is to help you define your personal goals and objectives and then, based on your risk tolerance as evidenced by your Risk Tolerance Questionnaire, ask you to determine the relative balance between these three “segments” This is a subjective decision on your part and the most important factor is your personal comfort level with your investment portfolio.
No strategy assures success or protects against loss.