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Investment Management

We employ a disciplined approach to constructing portfolios that is focused on tax efficiency, low cost, and managing risk. Each portfolio is customized to your unique time horizon, tax situation and risk tolerance. Quarterly investment account rebalances are intended to keep your asset allocation aligned to your appropriate strategy.

Security analysis methods include:

  • Behavioral Finance - examines how psychological influences and cognitive biases affect the financial decisions of individuals and markets. Unlike traditional finance, which assumes that investors are rational and markets are efficient, behavioral finance recognizes that emotions, overconfidence, herd behavior, and mental shortcuts often lead to irrational decision-making. This approach seeks to understand and predict anomalies in market behavior by studying how human behavior deviates from logical economic models.

  • Modern Portfolio Theory - attempts to maximize portfolio expected return for a given amount of portfolio risk, or equivalently minimize risk for a given level of expected return, by carefully choosing the proportions of various assets. Modern Portfolio Theory assumes investors are risk averse, which means when given two assets with the same expected return, the investor will choose the less risky one. An investor is only willing to take more risk if the expected return is greater. Therefore, Modern Portfolio Theory aims to construct a portfolio of investments that has the best possible expected return for the level of risk.

  • Fundamental Analysis - concentrates on factors that determine a company’s value and expected future earnings. This strategy would normally encourage equity purchases in stocks that are undervalued or priced below their perceived value.

  • Technical Analysis - attempts to analyze a future stock price direction based on market trends. The assumption is that the market follows discernible patterns and if these patterns can be identified, then an analysis can be made.

  • Charting - involves using and comparing various charts to analyze long and short term performance or market trends.

  • Cyclical Analysis - assumes that the markets react in cyclical patterns which once identified, can be leveraged to provide performance.