Our mission is "to empower people who are first generation success stories to overcome financial imposter syndrome."
Our primary philosophy is to create a custom, diversified portfolios that incorporate public and private securities (for investors who qualify). Our investment strategies blend efficient market theory ("passive investing"), adaptive markets hypothesis, what some people call "alternatives" and Sustainable and Responsible Investing (SRI). If that all sounded complex, it can be. If you didn't understand it all now, you will.
Sustainable and Responsible Investing (SRI).
SRI has been interpreted in many ways over the years. We see it as a 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. "Sustainable investing isn't about changing the world, it's about understanding how the world is changing." - Sustainable Investing Alliance
Put simply, we want to use all of the information that's available about companies to make decisions.
According to the Forum for Sustainable and Responsible Investment (US-SIF):
"Sustainable investors have helped push both public and private companies to be more responsible by improving their ESG (environmental, social, governance) practices in the United States and around the world, benefiting countless individuals and communities. They have moved the investment industry to recognize and consider its exposure to climate change, human trafficking, private prisons, conflict minerals, tobacco, and weapons manufacturing. Famously, sustainable investors used their influence to help end Apartheid by pushing many large multi-national corporations and their investors to withdraw from South Africa." - US-SIF
We work as fiduciaries with our clients and investment partners to address the issues our client's care about while achieving their goals.
Fundamental analysis involves analyzing individual companies and their industry groups, such as a company’s financial statements, details regarding the company’s product line, the experience, and expertise of the company’s management, and the outlook for the company’s industry. The resulting data is used to measure the true value of the company’s stock compared to the current market value. The risk of fundamental analysis is that information obtained may be incorrect and the analysis may not provide an accurate estimate of earnings, which may be the basis for a stock’s value. If securities prices adjust rapidly to new information, utilizing fundamental analysis may not result in favorable performance.
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.
Passive investing involves building portfolios that are comprised of various distinct asset classes. The asset classes are weighted in a manner to achieve a desired relationship between correlation, risk and return. Funds that passively capture the returns of the desired asset classes are placed in the portfolio. The funds that are used to build passive portfolios are typically index mutual funds or exchange traded funds.
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).
Nobel Laureate Eugene Fama's view of the efficient market theory is the foundation of our investment philosophy. He believed that equities classified as "value" outperform equities classified as "growth" so for our equity positions, we skew towards "value." This concept - for which he won the Nobel Prize - has historically, though not necessarily in the future, lead 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." We invest our equity proportionally to the global market of securities between domestic and international and add an ESG factor considering 30 metrics. Finally, for clients who qualify, we help them take advantage of alternative investments and alternative investment strategies within private markets.
Our fee (directly debited from client investment accounts) is 1% annually for accounts under $2,000,000 and 0.75% (annually) for any amounts over $2,000,000.
Our firm receives no commissions or kickbacks from any source. You see our fees separately on your statements. This reduces the inherent conflicts typically associated with "big box" brokers and helps us to achieve your objectives.
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.