Once we achieve clarity concerning risk capacity and tolerance, we aim to construct portfolios by combining investments with different risk and return profiles in the proper proportion for each client. Importantly, we will also consider other investments (i.e., real estate investments, concentrated stocks positions, etc.) and risk exposures (i.e., business interests, etc.) that a client may hold to provide a customized investment strategy that avoids duplicating risk exposures already embedded within the client’s financial profile.
We combine the following four strategies to construct each client portfolio: