The Enrichment Portfolio
Risk-managed investing for today's markets
We believe that relying on financial markets to deliver historical average returns in all market circumstances increases the risk that our clients will not be able to achieve their financial goals. We’ve also learned that there’s more than one way to actively manage a portfolio successfully. Just as a car, motorcycle, and SUV can each take you from point A to point B, different active investment strategies can also get you to the same financial goal. The decision between them comes down to individual preference, priorities, and investment personality.
We offer three different risk-managed strategies, each with a unique approach to active management. They are the product of thousands of hours of research and the extensive hands-on experience of our investment team.
Our flagship strategy, offering a balanced approach to risk management.
Our Dynamic Prime strategy defends against both passive and active management risks. The approach guards against investment mistakes by owning a diversified portfolio of different asset classes, by allowing for tactical changes in asset allocation, by utilizing both quantitative and qualitative decision making, and by not making large asset allocation bets. Our Dynamic Prime portfolios boast an audited GIPS compliant track record that spans more than a decade, and the same investment team that produced those returns is still managing the portfolios today.
Under the direction of our highly respected investment team, this strategy will typically not deviate more than 50% from the risk parameters of its benchmark. Our Dynamic Prime portfolios are ‘go anywhere’ portfolios that can own any kind of institutional quality asset class that our investment team believes offers good value. As a result, the portfolio can potentially outperform in any market environment.
Designed to grab market returns and protect against strategy and human error.
The Dynamic Market strategy buys, holds, and rebalances a traditional diversified portfolio most of the time. The difference between Dynamic Market and traditional buy and hold investing is that at extremes in market valuation, the portfolio will either underweight risk assets when markets are expensive, or overweight risk assets when they’re cheap. These adjustments to asset allocation can have a significant impact on portfolio performance at major market turns.
This strategy defends against the risk of a major investment mistake by allowing 30% of the portfolio to be actively reallocated at market extremes while the majority of the portfolio remains invested in the diversified core portfolio. At market bottoms this strategy is likely to have the highest allocation to risk assets, thereby increasing the probability of catching the early gains of a bull market.
While still offering the benefits of active management at market extremes, Dynamic Market is all about accepting market risks – and returns – most of the time.
Designed to protect against market decline and manager error.
The Dynamic Quant strategy utilizes our Dynamic Prime strategy as a ‘core’ portfolio, and then invests close to 40% of the remaining asset allocation in a sophisticated, proprietary quantitative model portfolio. This model has elements of value and momentum to sector rotate within U.S. equity markets, and will go to cash at major market turns. The rules for the Quant allocation were developed to defend against the kind of major market declines investors experienced in the 2000-2002 and 2007-2009 bear markets.
By adding a quantitative ‘satellite’ allocation to our actively managed Dynamic Prime strategy, investors get a unique combination of portfolio styles. And because the quantitative allocation of the strategy can go 100% to cash or bonds during bear markets, this portfolio offers clients the opportunity to significantly reduce portfolio risk when markets become volatile.
If you would like to know more about our investment process, please give us a call at (305) 274-1600 or contact us online.