Investment Philosophy
“Success is both finding your desired course and then positioning yourself to stay the course.”
The firm’s core belief is that it is a comprehensive financial plan that should drive investment and asset allocation decisions, not exclusively the client’s personal risk tolerance. Many of the firm’s clients hold a personal risk tolerance which may be higher than the required risk necessary to potentially achieve sufficient returns for a successful investment and life outcome. Detailed discussion of this difference between required risk and tolerated risk leads to the clarifying discovery of each client’s desired risk. It is this desired risk, not tolerance for risk, which becomes the foundation for each client’s individually designed asset allocation.
Helping a client establish sufficient liquid reserves to remain steady in the face of market volatility is another important element of the firm’s investment philosophy. Most human investment behavior results in buying at the exuberant market highs and selling at the distressing market lows. Proper liquidity and reserves can create an environment which allows a client to overcome this behavioral tendency. This increases the probability of doing what is necessary to be a successful investor.
Allowing The Advocate Group to act in the capacity of investment advisor for the client, by using its discretion in portfolio management, also enhances the professional investment experience because delegation of discretion can help relieve stress without a loss of client control.
The Advocate Group’s Investment Philosophy is also driven by the unique circumstances of its client base. Many of our clients hold a concentrated wealth position in the securities of the company for whom they work. Proper management of this concentrated wealth position, within the context of the entire investment portfolio and financial plan, are key elements of the firm’s overall value proposition.
Successful investment management at The Advocate Group is not about achievement of a certain performance above a predefined benchmark. Our idea of a proper investment management experience is about seeking sufficient return at each client’s desired level of risk leading toward the successful fulfillment of their individual financial plan and objectives.
