Investment Process
The investment strategy we build is simple but powerful:
Our philosophy is to win by not losing. The portfolios developed are managed on spreads between up-captures and down-captures. That is, we aim to capture a greater proportion of the market's up movements, while minimizing capture of down movements. The core of our investment strategies is based on the idea that avoiding a market precipice is essential to success, because the less the investor loses during downturns the less they have to make up when the market rebounds.
The promotion of growth in our portfolios is always important, and managing against full participation in downward moves serves this objective.
We firmly believe that one of the keys to the implementation of a successful strategy is a well-defined process. The process is comprised of three steps:
1. Manager Selection.
Our firm utilizes Returns-Based-Style-Analysis to screen over 20,000 investment options including mutual funds, ETFs, separately managed accounts, and hedge funds. From those, we are able to select which will be good fits for your particular portfolio.
2. Asset Class and Manager Optimization.
The portfolios are built based on two essential components. The strategies begin with “Efficient Frontier” theories and are overlaid with a tactical component from our investment committee. According to the theory, whenever an investor has a collection of diversified, uncorrelated assets, an “Efficient Frontier” can be built. This model attempts to pair various asset classes together to optimize risk and reward potential. We provide further enhancement to the traditional “Efficient Frontier” theory by utilizing the Black-Litterman modeling system, which gives our investment committee the ability to provide a tactical component to our strategies that allows us to focus and manage based on current economic conditions.
3. Ongoing Review and Monitoring.
With actively managed portfolios, the ongoing review and monitoring is critical to keep investors informed and investment strategies updated to address today's ever-changing market conditions. Our firm conducts daily, weekly, monthly, and quarterly updates to constantly ensure our investment strategies stay on track.
Tailored Portfolios at Retirement Path Financial
At Retirement Path Financial, we believe in personalized investment strategies tailored to your unique risk tolerance and financial goals. Our approach encompasses a diverse range of asset classes, carefully selected to optimize returns while managing risk.
Diversified Investment Options
- Mutual Funds: We utilize mutual funds to provide broad exposure to various market sectors and asset classes, offering diversification and potential for long-term growth.
- Stocks: Our portfolios may include carefully selected individual stocks, chosen based on rigorous analysis and aligned with your investment objectives.
- Certificates of Deposit (CDs): For clients seeking stability and predictable returns, we may incorporate CDs to provide a secure component to their portfolio.
- Bonds: We offer a range of bonds, including Treasuries, Corporate bonds, and tax-free municipal bonds, tailored to your risk preferences and income needs.
Balancing Risk and Opportunity
- Mix of Bonds: By incorporating a blend of bonds, including Treasuries, Corporate, and tax-free municipal bonds, we aim to provide stability and income generation within your portfolio.
- Risk On Risk Off (RORO) Strategy: We implement a dynamic approach to asset allocation, utilizing the Risk On Risk Off strategy for style box and sector rotation. This strategy allows us to adapt to changing market conditions and capitalize on opportunities while managing risk effectively.
At Retirement Path Financial, our goal is to build portfolios that reflect your unique financial situation, preferences, and goals. Whether you're seeking growth, income, or a balance of both, we're dedicated to designing investment solutions that align with your vision for the future.