Investment Methodology
Approximately 90% of active managers fail to beat their benchmark index*
Like many registered investment advisors, the firm seeks to actively pick passively managed products for tax efficiency and lower costs. The key difference is the firm also uses a Quasi-Hedge Fund method to enhance returns and reduce risk. Please reach out to us for more details.
Investors need to be fully diversified
Surprisingly, the total stock market is no longer adequately diversified. Did you know that, as of 7/19/2021, eight out of the ten largest publicly traded companies are all technology related. Investors need a balanced mix of stocks that are not so heavily weighted in one sector. Prior to 2008, the financials were the largest sector weighting and that did not work out too well.
Bond funds are not as safe as you think they are
Did you know that for roughly every year of maturity you have in a bond, the expected value of the bond can fall up to 1% in value if interest rates rise 1%? So, if you owned a 20 year treasury, you could potentially lose as much as 20% of your investment. Something that you thought was risk free really is not.
Alternative investments can help diversify bond risk
When you hear the term hedge fund, you should be skeptical by the time a typical investor has an opportunity to purchase one, it has often saturated the market, and they are looking for what they call "dumb money". Rest assured, we have carefully vetted the universe and have institutional access to purchase a small portion of this space**. Risks are often less than some bond funds, and it serves as an extra diversification tool.
Stay diversified
You may have heard before that diversification is of the utmost importance. Many investors and advisors are not as diversified as they think they are. Please reach out to us to see if you are on track.
Reduce your tax burden and control costs
Costs and realization of taxable gains are the only sure thing that can be controlled. We shop for the most appropriate low-cost investments and work to reduce your investment tax burden.
Understand
Knowledge is power. Come to us with questions on anything in the investment world. Learn about what to do and especially what not to do.
“Know what you own, and know why you own it.”
Peter Lynch
“An investment in knowledge pays the best interest.”
Benjamin Franklin
* Rosenberg, Eric. (2020), Most investment pros can't beat the stock market, so why do everyday investors think they can win? https://www.businessinsider.com/personal-finance/investment-pro s-cant-beat-the-stock-market-2020-7
** MAWM utilizes some securities that are hedge fund-like. A direct purchase of a hedge fund product is only available to qualified investors.
