logo1 (1K)
LeftCap   Investment Philosophy   RightCap

We believe a disciplined, long-term investment strategy and diversified portfolio offer the strongest potential for realizing your desired rate of return.  Our investment advice is primarily focused on active and passive no-load mutual funds with occasional recommendations for individual bonds.

Our investment process is based on these guiding principles:

We are mindful of our fiduciary responsibility

Recognizing the trust placed in us, we treat your money with the same care and prudence we treat our own.  We act fully in your interest, making recommendations that further your unique goals.

We develop diversified portfolios using multiple asset classes

Portfolio construction is defined by principles collectively known as Modern Portfolio Theory, based on the work of Nobel Prize Laureate Harry Markowitz.  A primary tenet of this theory is that there is a relationship between risk and return.  Portfolios composed of several non-correlating asset classes will experience fewer price movements and less volatility than more concentrated portfolios, even though more diversified portfolios will inevitably include some underperforming positions at any given time.  The result tends to be a portfolio with a higher risk-adjusted return.

We pay close attention to risk

We continually manage portfolio volatility and downside risk, aiming for the desired return within a client's risk tolerance.  We measure risk for individual asset classes and for the overall diversified portfolio.  Although investors can't earn significant returns without taking some investment risk, risk can be managed prudently through appropriate asset allocation, diversification, and disciplined rebalancing.

We develop portfolios for the long-term

Our portfolios are designed to achieve long-term goals.  We do not time the market nor make decisions based on short-term market anomalies.  Investors who allow interim market swings to send them off course can fall short of their goals.  Therefore, we ask you to follow our investment recommendations for sufficient time to benefit from the marketís long-term direction and to allow temporary market declines ample time to recover.

We monitor investment performance

Communications and performance monitoring are keys to a successful investment advisory relationship.  We measure the growth in your investments against both your stated objectives and independent benchmarks.   We rebalance your portfolio to keep your asset allocations in line with your plan.

We aim to reduce taxes

We believe tax efficiency is critical to achieving your long term goals.  During portfolio construction, we minimize the impact of taxes by considering the differences between taxable investment accounts and tax-deferred retirement accounts.  For example, year-end portfolio turnover, capital gains, and distributions affect these accounts differently.  Toward year-end, we review taxable accounts, seeking opportunities for tax optimization.   When appropriate, we harvest tax losses to offset gains in outperforming funds.  We also work with clients to develop effective distribution strategies for tax-deferred accounts.

We are cost conscious

We continually research investments to understand their hidden costs and true value.  We use only no-load mutual funds so clients never bear front-end or back-end loads, and rarely incur 12b(1) marketing fees.   Within the no-load category, we select funds with lower expense ratios, higher historical returns, and longer management tenure than industry averages.  When appropriate for the portfolio, we may use index mutual funds for certain asset classes, which have lower expenses and lower taxable distributions than actively managed funds.

"Time and the power of compound interest are on your side."
Chris Cooper