Planning ensures that your goals are met.
Risk Management protects your assets.
Portfolios are built with Modern Portfolio Theory.
Individual investors make risk decisions based on their own life experiences. Individuals have different tolerances for different types of "losses". Our life experiences include both emotional and intellectual factors. How much risk (in a particular situation) are you willing to take for a given reward. The risks that you are willing to take in any activity (investing) is determined by the cumulative factors (emotional and intellectual) describing your life at this moment in time. What is your Risk profile today and does it match your Investment portfolio?
is investing in more than one Asset Class, Sector and/or Geographic region.
Modern Portfolio Theory solves the problem thought about daily by all those investing money - how to construct a portfolio. Modern Portfolio Theory builds a portfolio with a higher probability of positive returns and a lower probability of losses (negative risk). These are highly-diversified portfolios - similiar to what foundations, endowments and large pension funds create on a smaller scale.
We build your Portfolio evaluating 5 criteria: Correlation which describes how investments behave when placed in a portfolio. A portfolio's return is attributable to which asset classes compose your portfolio. Each investment has its own characteristics: liquidity, relative performance, sensitivity and the speed of price change. Investment risk which is almost always overlooked in portfolio construction. Active optimization adjusts your portfolio to a changing world.
Insuring a specific asset is accomplished by purchasing protection against its loss. The purchase of a
short or a "derivative" product is used to insure against the risk inherent in a specific investment.
Strategic hedging allows Clients to hold onto their investments while eliminating the risks of future losses from those investments. Just like your home owner's insurance protects your home - now you can protect your investments.
A short or a derivative are the instruments used to hedge an investment. There are a broad variety of choices now available to all investors to hedge investments.
Options and/or futures are the primary choices used to hedge positions. Options and futures can also be used to leverage a position.