“I appreciate the sophistication and additional diversification of hedging strategies and alternative investments.”
Investing with hedging strategies and alternatives may provide you several benefits:
From a rapidly growing universe of alternative investments, our investment committee researches the historical correlations between investments. We want assets that have little relationship to equities or to each other. In today’s volatile investment environment, these are often hard to find.
As shown in the picture, hedging and alternative investments strategy reduces the overall bounciness of a portfolio.
This strategy increases the chances of higher average long-term returns. Each investment has an average rate of return that is historically independent of equities and bonds. A smoother ride may help you sleep better at night.
We prefer publicly traded, marketable mutual funds or ETFs. This enables us to both purchase and sell investments, as necessary. Flexibility is a key element to SBMA.
After finding a series of investments, the A&I Financial Services Investment Committee ranks them by their relative performance. Using a proprietary methodology, we choose the investments likely to deliver consistent positive performance and to maintain a low correlation with each other and with equities and bonds.
After determining the ideal investments for the asset allocations, and determining the technical trends are desirable, the investment committee layers the investments into a portfolio. We take great care to reduce the bounciness of your overall portfolio. Modern portfolio theory plays a key part in the asset allocation of SBMA.
Our investment policy committee meets at least weekly to discuss investments. We meet with the managers of any investments at least annually. Then, we repeat this four-step process.
Not every client invests with alternative investments or hedging strategies. Every client talks with their personal financial advisor about their unique situation, and the advisor invests appropriately.
We educate our clients about the specific risks associated with these strategies. These risks can include limited liquidity, the use of leverage, commodity price volatility, tax considerations and increased expenses.
Balance the risk and reward between investments to achieve your real-life financial goals.
We build high-quality, actively-managed equity portfolios using academically-proven techniques.
If you have a large amount of your net worth in the equity of a single company, learn how to reduce your risk, reduce your taxes, protect and grow your wealth.
Learn how we build an investment portfolio around your large equity position and help you diversify—not double-down (or worse) your risk.
Learn about how we manage incentive stock options and nonqualified stock options to help you grow and protect your wealth, reduce your taxes, and achieve your personal goals.
Learn how our team makes recommendations for the portfolio we call “Foundation Income.”
Learn how we perform investment performance analysis and provide our clients access to this information, on demand, with great technology.
Learn how we solve the complex problem of providing retirement income and reducing income taxes.
For some clients, an annuity may provide a safe and prudent retirement income. We have independent, expert annuity agents with a huge array of providers to choose from.
Learn how we provide retirement plan advice for our clients 401k accounts, and for employers who want to provide advice to their employees.
Our wealth management approach may be different from experiences you have had with other advisors.
We offer a broad array of events that broaden our knowledge and experiences.
Read this Periscope to learn what today’s politics might mean for our investments and also to get the short, (and long if you like), version of our investment and economic commentary.