Risk Management

The right amount of risk is like a good mattress — when it’s just right for you, you’re going to sleep better.

CONCENTRATED POSITIONS

Too-heavy weightings in any position could expose a portfolio to excess volatility and ultimately, loss of capital risk. A calculated exit strategy is essential to achieve de-risking of the portfolio in a tax-efficient manner. We have a strong track-record of success in this department.

MODERN PORTFOLIO THEORY

MPT is a practical method of portfolio construction that seeks to maximize expected returns for a certain level of risk through diversification. American economist Harry Markowitz pioneered this theory and eventually won a Nobel Prize for his efforts. MPT assumes that the investor is risk-averse, but still desires to achieve a certain level of return. Diversification is executed by building certain levels of exposure to multiple asset classes with differing levels of correlation. Using low-cost Exchange-Traded Funds (ETFs), we can select an optimal mix of exposure to each asset class based on a client’s risk profile.

Investor & Behavioral Psychology

We pride ourselves in spending a lot of time up-front with our clients, understanding their situation and building a sustainable long-term plan. We also have an acute understanding for and broad experience of wide-ranging behavioral biases and hubris that can severely impact investor behavior. That’s why one of our go-to mantras to clients when times get tough is to “remove your emotion, and stick to the plan.” Weathering any financial storm requires diversification and discipline.

Stock-based Compensation

Managing incentive stock options, non-qualified stock options, ESPP or restricted stock units? Many employees fortunate to have the great opportunity to build wealth with these types of programs do not take into consideration or properly plan for the associated risks. We can help build a reliable plan to ensure you aren’t assuming too much risk for promises of high returns.

Alternative Investments

We have experience and expertise helping manage Limited Partnerships, Income-producing real estate, Private Placements, Annuities, Cryptocurrency, and Derivatives.

Cash Flow Planning & Budgeting

Whether you’re building toward retirement or have already entered into it, assessing your cash flow needs and expense budgeting is critical to developing a sustainable plan. We use tools like MoneyGuidePro to help clients visualize their long-term plans.