Our Strategy

Investment Philosophy

December 2018 experienced its worst performance in 87 years (as measured by the S&P 500 index) capping a year characterized by a return of volatility. As financial advisors, we remain ever vigilant in developing strategies that attempt to reduce our clients’ exposure to this market risk.

Portfolio diversification, primarily asset allocation, represents a widely used risk management tool. For decades investors have exclusively used stocks, bonds, and cash to manage their investments. Globalization and other market trends have reduced the capacity for these asset classes to effectively hedge one another, therefore, eroding their ability to add proper diversification within a portfolio.

Through in-depth research and statistical analysis, CFA has developed strategies designed to reestablish effective portfolio diversification using “Alternative” assets, (so termed because they lay beyond the conventional stock, bond, and cash realm). Ongoing research and analysis provides a tactical roadmap to effectively integrate these “Alternative” assets with the existing traditional investments with the purpose of reducing portfolio volatility*. Although these alternative assets are sometimes less affected by market risk than traditional investments, they are subject to their own unique risks.

These “Alternative” assets are another way professional management teams formulate allocation strategies. Our firm seeks to use these alternative investments when appropriate.

Investments include:

Private Equity

Business Development Companies

Commodities & Currencies

Managed Futures limited partnerships

Real Estate

REITs and other Direct Placement Partnerships

Hedge Funds

Mutual Funds and Exchange Traded Funds

*Keep in mind that while diversification may help reduce volatility and risk, it does not guarantee future performance.