Investment strategy

Proper portfolio construction combined with investment management is really a process that is part Art and part Science.

During periods of financial and emotional stress, panic is not a long term strategy for success. It is important to realize that the total value of any investment strategy or financial asset really consists of two components: an economic component and an emotional component, driven by human behaviour including psychological and sociological factors. 

The Art…

  • Mastering self-discipline through the ongoing understanding and knowledge of capital markets and the emotions of human behavior driven by greed and fear
  • Identifying where we are in the business cycle: recession, recovery, growth, expansion or decline
  • Constructing and properly combining the various asset classes and components of a portfolio to achieve the highest rate of return matching your true tolerance for risk

The Science…

  • Analyzing the historical returns of individual and combined asset classes, their risks and maximum historical losses and other empirical facts, including volatility for various asset classes as well as their correlation over a normal business cycle of three to five years
  • Combining fundamental research with technical research and consensus of analyst opinion to understand each holding and sector invested in, increasing our odds of success