Diversification

We believe that strategic asset allocation is the most important determinant of a portfolio's risk and return over time. We design globally diversified portfolios that target the major asset classes of domestic and international equities, fixed income, alternative investments, and cash. We use a disciplined approach in constructing and monitoring our allocations.

Our investment strategy emphasizes investments that have a low correlation to each other. Institutional investors have long used low correlated investments such as gold, energy, real estate, and long/short funds to manage risk. These and other alternative investments, in moderation, add the potential for higher returns and lower risk in a portfolio. Today, these segments are more accessible than ever, and their relatively low correlations to the S&P 500 can make them effective diversifiers.

Unforeseen events and long-term global trends affect financial markets in different ways: what hurts one segment of the market may help another. By diversifying among different kinds of investments, in a broad range of asset classes, our portfolios are designed to produce more consistent returns. We focus on positioning our portfolios for consistent, long-term growth and stability throughout market cycles.