Diversification is a critical part of the investment process when it comes to balancing risk and reward.  Our asset mix is broken down by geography and investment type.  When considering equities, we also look at sector, market capitalization, style, plus volatility.  And with fixed income we think about duration, credit quality, type of issuer, and debt classification.  Our mix is capped off with alternatives investments.

Our selection process identifies investments with key characteristics that typically lead to outperformance when matched with certain trends or cycles.  We pursue a top-down approach and search rigorously to find investment opportunities wherever they may reside, anywhere around the globe.  Just as important, we pay close attention to the amount of risk we take on in any given investment holding.

The world is not a machine.  It is constantly evolving and portfolios need to be responsive to the changing landscape while still maintaining a long-term view.  For example, is the 60/40 stock-bond mix still appropriate?  How should a portfolio look during periods of high inflation?  Answering questions like these leads to adjustments that may improve a portfolio’s odds of success.