Investment Philosophy

• Focus attention and efforts on BOTH what we can control and what matters when making investment decisions.
• Beware of false precision and falling in love with models, particularly when valuing assets and instead think probabilistically to reach expected value.
• For every variable, establish which inputs have an outsized impact on results (Pareto Principle or 80/20 Rule).
• Being patient with a long-term orientation in a world where attention spans are measured in seconds provides a competitive advantage.
• Every investment in the portfolio must serve a purpose in achieving the overall account objective by positively contributing to the targeted risk/reward level.
• The attractiveness of any investment is directly proportional to the price paid, the greatest asset in the world can be a terrible investment if you overpay. Price is not the same as value.
• Rising tides lift all boats - long-term megatrends provide the most useful reference point when deciding where to allocate capital.
• Costs matter, particularly over the long run. Minimize investment expenses as much as possible to reduce drag.

We utilize a Core and Satellite approach that aims to balance the risk and return of various assets in order to achieve the client's stated objectives.

In Traditional Portfolios, the Core consists primarily of low-cost index ETFs, Fixed Income and other investments that provide broad exposure to mature asset classes throughout the world and create a ballast for the Satellite holdings.

Satellite holdings can be thought of as a tactical overlay, they include individual stocks, thematic investments, sector bets and event-driven ideas but tend to be more variable than Core holdings. For a visual representation of how we think about constructing portfolios, see the Investment Funnel Graphic.