Risk Management

There are two important ways we help clients manage risk in an investment portfolio. 

First, among equity positions the client takes enough positions to help assure diversification and sound asset allocation*.  Normal flucuations in the marketplace still take place, however, a catastrophe like that of 2008 may be mitigated by acquiring opposing positions designed to gain in value when others decline.  Due to uncertainty and hypersensivity in the financial markets, these effective tools are enjoyed by many clients.

Second, a shift of assets away from the traditional stock market is another way to manage risk.  Alternative Investments** like oil, natural gas, timber and corporate warehousing are the type of programs that perform in their own ways, regardless of the stock and bond market.  For qualified investors, alternatives provide diversification.  For years academic endowments like Yale and Pitt have relied on programs like these to perform when traditional markets don't.

Please contact us if you'd like to discuss further how these approaches might help you get closer to your financial goals. 

*Diversification and Asset Allocation do not guarantee against loss.  They are methods used to help manage investment risk.

**Alternative Investments are often speculative, lack liquidity, lack diversification, are not subject to the same regulatory requirements as securities and mutual funds, may involve complex tax structures and delays in distributing important tax information, and may involve substantial fees. These products often execute trades on non-U.S. exchanges. Investing in foreign markets may entail risks that differ from those associated with investments in U.S. markets.  These investments may not be appropriate for all investors.