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Investment Strategies

"We believe that the best way to make money is to avoid losing it in the first Place"®

Rule No. 1: Never lose money.
Rule No. 2: Never forget rule No. 1.
- Warren Buffet

We believe that it’s critical to defend against the devastating impact large drawdowns can have on the long-term growth of an investment portfolio. We therefore develop and implement investment strategies specifically geared toward our client’s unique investment goals as well as their tolerance for risk.

Strategy Diversification

Our approach is based on using varied strategies to help minimize downside risk. While each of our strategies has its own methodology, our main goal is to avoid large-scale losses. We believe that diversification across multiple risk-controlled strategies helps manage wealth for both performance and protection.

Risk-Managed Strategy

In attempting to avoid large losses, we utilize strategies that emphasize low correlation to broader volatile market activity, whether through hedged equity with the use of protective options, tactical strategies to dynamically adjust to market conditions, or other risk management practices.

Professional Risk Managed Strategies

Braver Capital Management

A full-market tactical solution with embedded risk management:

  • Designed to protect investors from severe losses in down markets while providing quality participation in rising markets
  • Seeks significantly reduced downside risk and maximum drawdowns, highly asymmetrical investment returns, and typically low correlation to traditional indices and asset classes

Canterbury Investment Management 

Portfolio Thermostat

Providing a dynamic response to changing markets:

  • A flexible investment strategy designed to maintain a stable portfolio risk profile by adapting to the characteristics of any market environment–whether bullish or bearish
  • Utilizes the proprietary Canterbury Volatility Index (CVI) to continuously monitor market states and ensure that investor goals are being maintained

CMG Opportunistic All Asset Strategy

Diversified return opportunities with potentially lower volatility:

  • Analyzes a diverse universe of mutual funds, resulting in a comprehensive assessment of risk and reward to help navigate today’s turbulent markets
  • Tactical asset allocations and active management anticipate changing opportunities in various asset classes to ensure that the portfolio remains in line with investor goals

W.E. Donoghue Power Dividend Index

Tactical dividend strategy for low yield conditions:

  • Entirely rules based and transparent methodology
  • Dynamically allocates between stocks and cash based on market conditions
  • Active management helps portfolios to stay aligned with investor goals

This hypothetical example is for illustrative purposes only and is not intended to project the performance of any specific investment or investment strategy and is not a solicitation or recommendation of any investment strategy. It is only designed to show the mathematical differences between substantial declines and less substantial fluctuations. It does not represent the trading of any actual account.

Don’t confuse “percentage” returns with DOLLAR returns 

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Investors are often asked to focus on annualized percentage returns, but this can divert them from the ultimate long-term goal: cumulative dollar returns. By not taking into account market downturns that can sometimes be masked by percentage return performance, it can be difficult to see the long-term effect market declines have on a portfolio’s ability to experience compounded growth.

This hypothetical example shows how Portfolio A saw its gains evaporate because substantial declines destroyed the ability to achieve compounding. Portfolio A had a +100% gain followed by a -50% loss, while Portfolio B had only a +65% gain, but followed by only a -15% loss. Both portfolios had the same net percentage gain of +50%. 

However, over time, while Portfolio A experienced higher percentage gains, Portfolio B was able to limit its downward fluctuations during declining periods. As a result, Portfolio B benefits from compounded growth while Portfolio A makes no advancement after several years invested. Investors approaching retirement in 2008 can attest to the financial impact of this kind of risk management.