No two people are the same and everyone has a unique financial situation with special requirements. The starting point for any financial advice is a full understanding of a whole range of factors, concerning the client, that influence the appropriate investment choices for a client.
No Conflicts of Interest:
The investment manager is entirely independent. The investment adviser receives no benefit from turnover or commissions on any product. This independence allows the investment manager to have a truly objective approach to the investment advice given to clients.
Track record and history:
The client receives advice or management, with disclosure of track record and history of the investment manager.
The approach to investment management will be agreed with the client and is based on assets under management. However there is also a significant focus on absolute returns. If the stock market is down 25% in a given year it is not a good performance to “lose only 20%”. A loss of 20% means that the client will have to make 25% just to get back to where he started. A loss is a loss and it is damaging to the long term wealth of the client. Some focus on absolute return is necessary. In this way the investment manager has to consider the risk as well as the return on any asset and I believe this is in the client’s interest.
The key to long term investment/trading success is risk management. Through appropriate position sizing, stop losses, and profit taking rules, it is possible to dramatically improve returns while minimizing risk and volatility.
Perhaps the most important aspect of investment management, and the key to long term success, is understanding what risk really is and what that means for execution, benchmarking and performance measurement.
For a full, and perhaps definitive guide to risk, it is hard to match Howard Marks.
While my main investment focus is on delivering exceptional returns through Cycle Dynamics, explained in the next section, I am also a lifetime subscriber to a wide range of exceptionally effective investment products. These can range from top rated newsletter products, with a particular focus, or other investment management products through my association with Great Lakes & Atlantic.
I maintain a list of my extensive access to investment products at the end of this note.
Minimized investment costs:
The investment manager receives no benefit from turnover or commissions on any financial product. In fact any such fees will reduce the performance on assets and are against the investment manager’s interest as well as the clients.
The investment manager is an independent trader/investor for his own account. This means that he is fully employed in finding the best risk adjusted returns for himself as well as the client, and manages the client’s assets in the same manner as his own.
There is no charge for an initial meeting. If the client chooses to engage the investment adviser then there are two levels of service:
a) Investment Advice based on an hourly rate.
b) Investment Management based on a percentage of assets, charged quarterly.
Fee levels are set from the national averages for Investment Advisers.