Our Investment Philosophy & Process
How we work with you. Our approach to risk management, macro and micro economic themes, and process.
Our Starting Point
Our Individualized Investment Process:
When looking for the right investment we utilize a three-step process to make optimal decisions. The process begins with an analysis of your needs, we then employ our investment strategy, and once the strategy is in place, we continually monitor risk.
We assess your financial situation and create a critical blueprint and individual plan that is transparent and understandable based on your interests, investment goals, financial assets and preferences. This is step one in determining your asset allocation.
- Investment objectives
- Risk tolerance
- Investment time horizon
- Tax needs
- Your unique circumstances and preferences
We also have the option of adding specialized investment screens to your portfolio to give it a focus on sustainable, green, and socially just companies, and/or empowering women in the workplace.
Once we know your objectives we implement a top down / bottom up strategy when building client portfolios which include:
- Review of global economic health
- Sector analysis
- Fundamental review
- Technical pattern review
From here we pick a basket of investments that are financially sound to build your portfolio.
Daily, we closely monitor key economic data and global trends. We examine:
- Credit Analysis: spreads, slope, macro changes
- Changes in the economic cycle
- We look for fundamental deterioration
- We screen for technical breakdown
Our Investment Strategy Explained:
This process unfolds with a top-down analysis of the overall domestic and global economic and political trends. Sifting through extensive global data, we determine where we are in the business cycle – expansion, contraction, boom, bust or troughing process. This, along with your personal needs dictates our asset allocation and our preferred sectors and countries.
We overlay this with our bottom up review which includes both technical and fundamental reviews. A few examples of what we review is management strength, income statements, balance sheets, use of capital, and competitiveness.
Macro Investment Trends
While it’s impossible to predict the future, macro trends can signal to us over long periods of time where we may be heading. We have been watching several long-term themes closely which play a role in how we position our portfolios.
The markets are discount mechanisms that have accurately predicted expansions and contractions in the past. We continually and vigilantly monitor the risk of our positions and portfolios to help ensure their safety. There are many risk measures that have helped us successfully assess the level of risk building in the system. Some of these include:
- credit spreads
- debt levels
- fundamental deterioration
- technical breakdowns
- LIBOR (a key benchmark interest rate index)
- yield curve
For more information about our process and how we can tailor this to your needs and objectives, please visit our contact page and get in touch!