Our Why

For many years now, the investment management business has encouraged advisors to outsource the most critical part of their job: investment selection.  Instead of a portfolio of handpicked stocks and bonds, most advisors hand that responsibility to mutual fund managers and/or separate account managers. 

There are several problems with that approach.  One issue is that these outsourced managers don’t know – or care – what other mutual funds or SAMs are in your portfolio.  This often results in overlap or duplication of stocks owned in various funds thereby reducing the effective diversification of your investment portfolio.  Another concern with outsourced investment management is the loss of control where taxable gains and losses are concerned. At the end of a calendar year, a mutual fund will tell its investors what their capital gains and losses are for the year.  There is no way to delay or manage that liability. In a portfolio of individual stocks, we can cherry pick gains and loss in an attempt to minimize – or sometimes eliminate – capital gains.