INVESTMENT PHILOSOPHY

 

Our investing philosophy begins with you: who you are investing for and when you will need the money.

We design investment portfolios that measure the risk associated with the possible returns. We typically invest in low-cost, exchange traded funds, money markets, treasury bonds and structured notes. If you have a lot of money in one or two successful stock investments - i.e. a "concentrated position" - we can help navigate the potential tax liability of recognizing those gains. 

SUMMARY

Nobel Laureate Eugene Fama's view of the efficient market theory is the foundation of our investment philosophy. His concepts - for which he won the Nobel Prize - have historically, though not necessarily in the future, led to higher returns. We build on his and other's philosophies by employing adaptive markets hypothesis and strategic asset allocation:  a portfolio strategy with 'target" asset allocations that requires periodic "rebalancing." Passive investment management is characterized by low portfolio expenses (i.e. the funds inside the portfolio have low internal costs), minimal trading costs (due to infrequent trading activity), and relative tax efficiency (because the funds inside the portfolio are tax efficient and turnover inside the portfolio is minimal).

We invest our equity proportionally to the global market of securities between domestic and international and add sustainable and responsible investing (SRI) factors considering 30 metrics. Finally, for clients who qualify, we help them take advantage of alternative investments and alternative investment strategies within private markets. 

Sustainable and Responsible Investing (SRI).

We see sustainable investing as an additional analytical process not a particular product. It is an investing discipline that supports a desire to achieve long term competitive returns, risk reduction and fiduciary duty by considering environmental, social and corporate governance (ESG) factors. We use this SRI analysis alongside all other information that's available to make investment decisions. 

Alternative Investing 

Alternative strategies and alternative investing are sometimes used interchangeably. When we say "alternative," we mean investing in something beyond traditional stocks, bonds, mutual fund and exchange traded funds. There are some investments we offer, like "structured notes," that are open to all investors but could be considered alternative. Then there are some investments that provide access to private equity, private debt, venture capital and infrastructure that are limited to the Securities and Exchange Commission's definition of "accredited investor." In many instances, blending traditional investing with alternative investing provides a truly diversified portfolio. A portfolio that is optimally diversified positions your portfolio for as much return as possible while mitigating the various types of investment risk. Questions about this? Just ask. 

OUR FEES

Our fee (directly debited from client investment accounts) is annually 1% for accounts under $2 million, 0.75% for accounts over $2 million but less than $5 million and .50% for account balances over $5 million.

Our firm receives no commissions or kickbacks from any outside source. You will see our fees clearly on your statements. Refusing commissions reduces conflicts typically associated with "big box" banks and brokers.

HOW TO OPEN AN ACCOUNT

Our use of technology allows for a more seamless account opening process than was available even five years ago.  After establishing our client relationship the account opening process is relatively simple.

Here are the steps:

  • We will initiate electronic transfer paperwork via email (IRAs/Brokerage accounts) OR
  • We will schedule a call to initiate transfer with former employer plan provider (401(k)s, 403(b)s)
  • We wait with you on the check or electronic transfer of funds

And that's it. Along the way, we will design your Investment Policy Statement (IPS) to document your individual objectives, time horizons, risk tolerance, liquidity and sustainability needs. Your investment experience, concerns and interests will always be considered. Upon completion of the IPS we will implement your new investment strategy.   

For more on how to open an account, our custodian Charles Schwab & Co. Inc. (member SIPC) Schwab or to discuss the JHCo. investment philosophy, just set up a call.