The firm practices active portfolio management. “SWM active management” means building and systematically rebalancing customized, diversified portfolios using individual stocks, mutual funds, and exchange-traded funds (ETFs) to generate income and/or growth in numerous diversified asset classes.
Our clients prefer not to ride down bear markets fully invested.
Our goal is to provide the income and growth that our clients need while minimizing the portfolio downside, protecting their capital during looming market crises and bubbles.
Our proprietary model portfolios use asset allocations that reflect client risk profiles.
We utilize an asset allocation strategy or “model” which offers the risk/return combination best suited for the client based on their risk profile together with their financial goals and cash flow needs.
Our philosophy does not lend itself to passive management.
We believe not only in setting a long-term strategic direction, but also in tactical
selling in very uncertain times, such as leading up to the 2000 dot.com bubble and the ensuing 3-year bear market, as well as the global credit crisis and recession of 2007-2009.
Our active management includes extensive, on-going research.
We focus on the big picture and sift through the noise by regularly attending lectures, workshops, local, regional and national conferences, webinars, and meeting with money managers to discuss the macroeconomic investment opportunities and outlook. As Institutional Advisors using the Charles Schwab Advisory platform, we have access to select funds and lower cost share classes for our client portfolios which usually are not available to the general public. We find, interview, and strive to use the very best money managers across the different investment asset classes.
Our sector allocations provide attractive capital gains.
We invest in sectors of the economy which stand out as major growth areas based on the current economic cycle. For instance, over the past decade, our clients have owned real estate, technology, financials, industrials, and healthcare sector funds, which all have produced extremely attractive capital gains compared to using passive, broad index strategies. Our strategy includes taking capital gains and rebalancing during the year, not waiting until year-end for possible losses.