We accept new money judiciously. Clients are generally accredited investors with whom we have some prior relationship or are referred by friends and colleagues. Money management is a very personal and ongoing relationship. We strive to ensure that our style is compatible with a client’s temperament and expectations.
We are active money managers. Our accounts do not passively blow with the market winds, nor do we subcontract to third-party managers and collect a fee merely for oversight. We manage for absolute risk-adjusted return. As such, we may at times seek diversification, raise cash, or concentrate on specific sectors.
We employ a momentum/trend following methodology. We look down before we look up. We prefer to avoid a loss rather than overstay a risky market in fear of missing a profit opportunity. This is not because we are particularly conservative; it is because of the math. We are paid to grow your money over time, and one bad year makes a mess of our compounding.
We do not use options, futures contracts, margin, or short sales. We may occasionally use certain derivative-based exchange-traded funds to hedge in volatile markets. Exchange-traded funds are our primary tool. We will also buy individual stocks for dividends or to exploit a particular theme.
We use Ameritrade and Interactive Brokers as our custodians.