Broker Check

Investment Strategy

Modern Portfolio Theory (MPT) – Traditional Passive

After three bear market events in the past ten years, individuals no longer have the appetite or time to recover half of their investment assets. High frequency (HFT) and Ultra High frequency trading (UHFT) has also caused the average hold time for investments to go from years to days. Many individuals who invest either through a broker or discount brokerage firm employ a buy and hold strategy and may be at a disadvantage.

Buy and Hold- Passive

  • Passive asset allocation investment strategies may not work in our current market environment.
  • Diversification alone is not enough to reduce market risk and in 2008 many asset classes became correlated in the same way as the market fell
  • Bear markets and low interest rate environments has caused much uncertainty for clients within 15 years or less to retirement
  • Individual investors do not have an infinite time horizon to recover from market losses

Risk Controlled – Optimized

Quantitative / Tactical

  • Active management
  • Preservation of capital (avoiding large losses) while maximizing growth
  • Employ a strict buy and sell discipline (Exit Strategy)
  • Use correlation and volatility measures to regulate risk (Risk Control)