Investments

Most of our clients are not in a position to lose the money they have entrusted to us.  Whether it is funds set aside for retirement or their children’s college education, preservation of capital is paramount.  As such, our investment process focuses on minimizing portfolio risk. Accordingly, there are several steps to our investment process for client portfolios:

  1. Establish a strategic allocation for each portfolio.
  2. Adjust the asset allocation away from the strategic allocation when there are “fat-pitch” opportunities.  A “fat-pitch” opportunity is when one asset undervalued relative to competing asset classes.

Our discipline means taking action only when the odds of success are very high.  Fundamentally, we are long-term investors looking for value in both the equity and debt markets throughout the world.

After identifying tactical asset-class opportunities, we execute our strategy using the best funds we can buy. We determine the “best” funds using a whole host of quantitative and qualitative criteria. While the quantitative metrics are somewhat obvious (i.e. return vs. peer group, consistent performance, low expenses), the qualitative review is more challenging.  For this, we consider factors such as the manager’s investment discipline, the stability and culture of the organization, the quality of the team and their commitment to the shareholders.

 

Certain material in this work is proprietary to and copyrighted by Litman Gregory Analytics and is used by McDaniel & Register/EFP Advisors with permission.  Reproduction or distribution of this material is prohibited and all rights reserved.

Advisory services through EFP Advisors Inc., an SEC Registered Investment Advisor