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Our Portfolio Management and Diversification Style
At Frye Financial Center, we believe
in a systematic approach used by sophisticated institutional
investors. It is comprised of the following steps:
- Establishment of goals, risk tolerance
levels and effective strategies
- Risk and age appropriate asset
allocation and diversification
- Investment selection and implementation
- Performance monitoring and analysis
- Strategy review and portfolio rebalancing
We believe that asset
allocation and diversification are the foundations
of any successful long-term investment strategy and,
as a result, we avoid market timing, sector overloading,
duplication and “story stocks.” Not all
investment categories perform the same way during the
same period and we cannot predict the markets. Therefore,
we follow Modern Portfolio Theory and
develop portfolios with varying risk and return characteristics.
To seek true diversity, and to minimize risk, we include
investments with reverse correlation and recommend certain
hedging vehicles.
Handling your own investments
can be a daunting and confusing task and is too often,
emotionally driven. Working with our professionals can
help you achieve potentially more favorable performance
results, when compared to the benchmarks. This is due,
in part, to our insistence on:
- In-depth qualitative and quantitative
analysis. We select quality investments based
on your investment goals. We seek investments with
a history of outperforming their index/category and
below average risk.
- Proper portfolio asset
allocation and diversification, with a strong
emphasis on high quality equity positions, laddering
of fixed income positions, and the inclusion of lower
volatility hedging vehicles. We also include foreign
securities in our allocation models, where appropriate.
International investing involves special risks such
as political instability and potential currency fluctuation.
- Rebalancing:
As professional wealth managers, we regularly review
clients’ positions and values to ensure they
remain consistent with allocations and goals. This
regular rebalancing has, historically, been shown
to be essential in potentially maximizing returns.
Our portfolio management services
also provide:
Tax minimization guidance
As our clients’ financial consultants, we are
always cognizant of tax implications and, as such, we
work closely with their accounting professionals to
develop tax minimization strategies. We utilize tax
advantaged investment vehicles wherever appropriate.
Convenience
Our clients look to us to organize and consolidate all
of their financial information and to simplify their
financial lives.
***Past performance is not a guarantee
of future results |
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