GOALS BASED INVESTING
BASED ON
NOBEL PRIZE WINNING
RESEARCH

We use well-researched and tested concepts as an adaptive framework to construct portfolios. These core concepts focus on intentional diversification, tilting exposures to characteristics that have been shown to outperform the market over time, being intentional about when we buy and sell, and doing the little things that aid in performance extremely well. This framework allows us to focus on investment performance while staying committed to your unique goals, values, risk tolerance, and concerns. You will never see us on CNBC with market timing commentary or outsized bets on individual names. Our only ambition is to manage money in a way that maximizes the likelihood of clients achieving their financial goals, and to minimize the risks that stand in the way.

INTENTIONAL DIVERSIFICATION

Nobel-Prize winning economist Harry Markowitz, author of many of the theories behind our asset allocation framework, is famous for saying that "diversification is the only free lunch" in investing. Through (intentional) diversification, investors can both raise their expected return and lower portfolio risks. The key concept behind diversification is that assets shouldn't be viewed in isolation, but rather, their potential risk and return should be analyzed relative to their contribution to the whole portfolio. Sutherland Integrated constructs global portfolios of equities, fixed income, and alternative assets and diversifies intentionally within asset classes using many of the same concepts that won Markowitz a Nobel Prize. 

INTENTIONAL EXPOSURES

Certain characteristics, such as value and size, have historically outperformed the market over time. To capture this opportunity for higher returns, we tilt portfolio holdings to overweight securities that exhibit these qualities. This is much like a hedge fund manager selecting individual companies who are believed to be undervalued. Our approach, which emphasizes risk management and low fees, diversifies across many companies that are trading at a discount to the market rather than just a few. 

INTENTIONAL REBALANCING

Emotions are the enemy of long-term investment performance. Markets often exhibit times of abundant greed or fear, at which times it is often hard for both retail and professional investors to trade against the market and their emotions. Every investor knows to "sell high and buy low" but fund flows and past manias demonstrate how few actually follow this principle of investing. Emotions are often enhanced when investing your own capital. This is why many professional investors often have someone else manage their portfolios. In our effort to invest to achieve client goals, we will often lower risk when markets are high, investors are greedy, and we feel clients are not compensated for additional risk. Conversely, we may be aggressive when the markets are down, investors are fearful, and companies’ valuations are depressed. This is done through both systematic rebalancing and, on occasion, tactical allocations. 

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