Our Investment Philosophy



Our Investment Philosophy


The design of a client’s investment portfolio is as unique as each client’s needs and objectives.  However, our investment approach is guided by several fundamental principles based on years of investment experience. 


1. Risk Management Strategies

Risk is inherent in almost all aspects of dealing with money.  Putting “the money in the mattress” may have an element of risk because of the long-term effects of inflation on purchasing power.  If interest rates decline dramatically, the reduction in supplemental retirement income can be significant.  The securities markets may be risky.  Excessive volatility creates emotional pressure and may increase the risk of making ill-timed buying or selling decisions.  Seeking to mitigate risk is inherent in our design of each client’s portfolio. 

2. Time Horizon

Potentially growing wealth from stocks and bonds requires a time horizon long enough to ride through the ebb and flow of market fluctuations. Although no one can predict the markets with any certainty, we believe the minimum holding period for capital market assets should be three years with the expectation of return considered on a typical market cycle of five to eight years.  We are careful to segment assets into time horizon “buckets” to address short-term needs with long-term objectives.

3. Model Design - Asset Allocation

Asset allocation has been shown to explain nearly 92% of the variability in the performance of an investment portfolio1.  Getting the appropriate mix of stocks, bonds, and other investments is critical in pursuing our clients' investment objectives and is the starting point in our investment process.  Asset allocation does not ensure a profit or protect against a loss.

4. Quality & Security Selection

Owning high-quality investments may help weather the volatile storms of the securities markets.  The direction and amplitude of market gyrations is not easily predicted and matters may be made worse by trying to time the market.  Owning high-quality securities help put the focus on the investment not the market. We believe Stifel’s nationally recognized research is fundamental in the security selection process.

5. Diversification

High quality today does not guarantee high quality tomorrow.  That is why diversification is essential to our strategy.  Diversification among and within various asset classes can help mitigate risk of being wholly exposed to a specific investment that may underperform or has a sudden drop in value.  Diversification does not ensure a profit or protect against a loss.  

6. Rebalancing

Disciplined rebalancing should mitigate the risk of the portfolio drifting away from a targeted asset mix and may help to systematically “sell high” and reallocate to “buy low” during periods of market volatility or imbalance. A policy of systematic rebalancing is part of our management practice. Rebalancing may have tax consequences, which you should discuss with your tax advisor.

7. Service Expectations

The investments recommended are periodically reviewed through all market conditions for quality and performance.  Each individual portfolio is analyzed quarterly and client meetings are scheduled at least semi-annually.  Market and life events may dictate contact as clients’ needs require.  Immediate access to portfolio balance is available via the internet and, at minimum, monthly statements and quarterly performance reports may be sent directly to the client.

1 Gary P. Brinson, Brian D. Singer, and Gilbert L. Beebower, Determinants of Portfolio Performance II: An Update, The Financial Analysts Journal, 47, 3 (1991).