We strive to balance risk and return within your portfolio of investments. The best way to reach that balance is through strategic asset allocation based on Modern Portfolio Theory. We recommend particular investments within that strategy for the sole purpose of increasing the likelihood that you will achieve your financial goals.

When it comes to individual stock selection, We believe that is too important a task for any one manager or team. Therefore, we will select multiple, experienced managers with proven track records for your portfolio; and we will continue to monitor each manager’s performance and advise a change when appropriate.

What is Modern Portfolio Theory?

Modern Portfolio Theory was first documented in 1952 by Harry Markowitz, who later won a Nobel Prize in Economics for his work. The theory helps quantify risk and has become widely accepted by Institutional Investment Managers during the past 50 years.

Diversification is more than simply dispersing one’s “eggs” into many baskets.  Modern Portfolio Theory explains the benefits of portfolio diversification and demonstrates quantitatively why and how it works to reduce risk.

Markowitz was also the first to establish the concept of an efficient portfolio. An efficient portfolio is one that has the smallest attainable portfolio risk for a given level of expected return (or the largest expected return for a given level of risk).

Maintaining a diversified portfolio – why and how?