For many years, it has been our firm's belief, along with the general belief of our industry as a whole that the most efficient way to invest is to develop diversified portfolios based upon the principles of the Modern Portfolio Theory*. Once a portfolio was created, the idea has been to buy and hold, rebalance as needed, and monitor the relative performance of the manager and/or funds.
While we still believe in the core ideals of the Modern Portfolio Theory, we as a firm believe that times have changed, and the days of "buy and hold" are behind us. A more proactive approach to asset management is needed to thrive in today’s volatile markets. This belief that the days of buy and hold are behind us, has lead us to a strategy that we call "Advance & Protect".
In the simplest sense, the goal of the Advance & Protect strategy is to grow your investment during periods of market expansion (advance) and to minimize losses during periods of market retraction (protect). Ideally, this strategy will transition capital from stocks into cash when sell signals are met, and deploy capital when buy orders are triggered.
We still strongly believe in portfolio diversification, only now, we are supplementing the diversification of your portfolio with specific buy and sell disciplines in an effort to mitigate risk and ultimately thrive during periods of market volatility and inconsistency. In our view, we believe that this is a key differentiator from the conventional buy and hold strategies employed by the great majority of investment advisors in our industry.
