We believe that professional money managers will generate results far superior to a client's or wealth manager's direct security selection and management. The universe of public and institutional funds offer the best alternative for the superior management of multiple asset class portfolios.
We believe that managers should be selected and evaluated based on their philosophies, processes, and people. Once selected, a manager should be allowed periods of poor performance, if he remains consistent with his philosophy and process. He or she should be replaced immediately, if their implementation strays significantly from the stated philosophy or process.
Evaluation of managers should entail a detailed review of all available pertinent information, including both fundamental qualitative and return factor analyses. However, the ultimate decision to hire or fire should be based on fundamental data. Performance measurement should be against appropriate benchmarks, not broad market indices.
We believe that there should be regular review of a client's situation to determine if he is continuing to move in the direction of achieving his goals. This includes revisions in strategic allocations as a result of revised assumptions or changing client circumstances or goals. We should continue to educate our clients, always remaining sensitive to the volatility of each one's expectations. Our responsibility is to assure that our client 'stays the course' and does so with a minimum of emotional pain. The focus should always be the client and the achievement of his goals, not the performance of the portfolio.
Back to Investment Planning Solution