The most important consideration in selecting a financial advisory group is that firm’s principles and philosophies. Compatible principles and investment philosophies are essential for satisfying, continuing relationships, which depend on mutual trust and respect.
The key elements of our principles and investment philosophies include:
• The acquisition and disposition of financial assets must be viewed in relationship to the needs and goals of the individual, not in a vacuum
• The basic principles of making and keeping assets are well- known and timeless: it is how they are implemented that success or failure is realized.
• Understanding the relationship between risk and reward, as difficult as it is to quantify, is the single most important factor in intelligent family wealth management;
• Investing is a marathon and not a sprint;
• Limiting downside risk takes priority over upside potential;
• Volatility management is paramount in navigating various market cycles
While the concept of diversification is an important one, we believe expected outcomes have been oversold. The concept of not having “all eggs in one basket” is timeless. However, for every company stock you own more than 50, the closer your return will be correlated to a market index. This concept is also known as a regression to the mean. Therefore, diversification is a small part of the overall investment strategy.
We believe a correctly crafted Investment Policy Statement (IPS) which details goals, expectations, philosophies, strategies and standards for the investment engagement. Return expectations and metrics such as Alpha, Sharpe Ratio and Standard Deviation make for an effective backdrop for all parties involved.
At Fontis Investments we bring extensive market education and experience, without the product pushing of Wall Street firms. Our advice is not clouded by any additional compensation or crusty inventory. Transparent. Liquid. Connected.