Since you are on this site, it likely means that you are searching for a sensible alternative to improve your investment process and performance. We've all done that search at one time. You may have done your last search.
I understand the frustration you have with regards to your investment portfolio performance over the past several years. You likely have a very traditional long only portfolio consisting of any number and types of mutual funds. This is generally because you hired a finance professional:
· who’s main focus is on sales
· has a very limited investment skill set beyond product knowledge
· who has been trained to construct portfolios with products and spend time gathering assets
· who generally over diversifies your portfolio with many types and styles of mutual funds, all in the name of proper diversification
What you end up with is a portfolio that, because of all the large number of its components, can only ride along with the market. Advisors do this in large part:
· to protect themselves against complaints of inappropriate portfolio construction (diversification is an overused but highly touted mantra)
· because they are unable to analyze securities and identify those with the best financial and business metrics which will provide the owner the best opportunity to outperform the market over time
· because they are unwilling or unable to spend the time to customize an advanced portfolio strategy for you, like including long-short strategies, which perform very well in most markets, not just rising ones
Although these traditional methods will never provide you an opportunity to receive above average results, this approach is generally acceptable when the market is rising. But when it is somewhat down or fairly flat, like the last several years, you end up with little or nothing.
Unfortunately for many investors, the goal of many advisors is to gather as many assets as possible simply because this is how they are best able to earn a good living. In order to do that, they allocate their clients assets into 'products', like mutual funds, or worse, segregated funds, so they can spend more time gathering clients and assets and less time on managing the assets. This is just the reality of the industry.
Then there is the issue of ‘adequate’ diversification. This area is often the recipient of abuse under the ‘if some is good then more must be better’ approach. Investment research has proven that somewhere between 12 to 18 stocks offers investors 90% diversification from market risk. Beyond 30 stocks, the diversification benefit is miniscule at best. Check your statements and see how many you have. And remember, you can’t outpace the market returns if your holdings copy the market!
Another reality is that the majority of finance industry professionals simply don't have the skill set to generate returns beyond that of the industry averages, no matter the market trend.
Here is the first point where I differ. I have the skill and experience to assess individual investments for above average safety, dividend income and capital appreciation. This alone produces results, that while trending with the market in general, out performs the market buy having identified the companies with the best financial performance metrics. That, in turn, is reflected in their stock price, over time.
My second and key area of differentiation is my knowledge of hedging strategies. These are sophisticated strategies that allow me to generate generous returns in many market environments. These hedging strategies not only produce good returns on a more consistent basis but depending on how they are implemented, can reduce portfolio volatility, limit risk, provide strong cash flows and generate returns that are very tax efficient. Not all returns are created equal (from a tax perspective) and these strategies that I like to utilize produce returns that have a lower tax rate than other investments. These strategies would also allow me to customize your portfolio with regards to your needs for planning for income and liquidity needs.
I can offer you an intelligent, rational approach through a very personal subscription service. Like a personal fitness trainer, I will work with you to assess your current status, determine your goals with you then together, prepare a strategy to get you to where you want to be in order for you to:
· take control of your own investment portfolio
· help you learn what it takes to make intelligent investment decisions and avoid big pitfalls
· get a better understanding of what is actually in your investment portfolio
· figure out what you really need in your portfolio to meet your goals
· simplify your investment portfolio so you are comfortable with it
· figure out what information you really need and what is just noise
· learn and benefit from the strategies that reduce risk and volatility (like those normally reserved for accredited investors)
· increase cash flows from your investment portfolio
· increase your investment income in a tax efficient way
Remember the Chinese proverb says, "Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime." You too can learn.
As you may have noticed, I am very passionate and excited about this work. I look forward to talking with you soon.
Helden Wealth Strategies