Developing and executing an investment strategy that encompasses every aspect of your financial life can be challenging, particularly when you have substantial assets and sophisticated needs. Our approach to investment management focuses on helping accumulate, manage, protect and grow wealth to meet your immediate and future needs.
Beginning with a clear investment philosophy we implement a decision-making process which may include risk awareness, integrating fundamental insights and quantitative discipline.
Our experienced investment professionals work with our client advisors to create a portfolio that reflects your specific goals, risk tolerance and time horizon. Our process includes thoughtful and objective manager selection, rigorous oversight, and regular review and evaluation of results with our clients.
We believe protecting against risk is equally important as realizing upside potential.
Our practice of investing in a broad range of asset classes which demonstrate high potential for long-term growth has yielded rewards for our business, our clients and our partner companies. This practice also balances our portfolios with particularly attractive risk mitigation characteristics, which provide the elusive security factor insisted upon by so many investors.
At Elite Capital Assets, we maintain a clear principle about the general nature of markets and how they affect portfolio formation and management:
It’s our belief that markets price securities so competently making it virtually impossible to consistently earn above-market returns by buying and selling stock based on presently available information such as earnings reports/forecasts, past performance or economic data.
The worlds markets have a long history of rewarding investors for their invested capital. The economy is forever growing and companies have to compete against each other for their investment capital; while at the same time millions of investors fight a daily battle in searching out the most attractive returns. Jointly, they generate movement of prices to reflect a fair market value. Simply put: all readily available information is already mirrored in the price of a stock, this means the only way a stock will change its price would be due to unforeseen circumstances and unknown information.
As an investor, this suggests that no one can predict with any reliability or consistency where the stock market is heading. Consequently, it is a fruitless exercise investing on predictions and market outlooks. Considering markets are efficient, routinely beating them is futile. We build our client’s portfolios (and of course our own) with low-cost, passive funds. This gives our clients the ability to “own” the market and seize market returns which would be dependent on their specific needs, eagerness and ability to take risk.
Diversification is Crucial
Our approach involves holding a widely diversified portfolio that represents various asset classes and reduces overall risk which grants favorable performances across a wide variety of market conditions. Diversification is the key to allowing investors to gain returns from the whole market rather than taking risks on specific market sectors, individual securities or market forecasts. Opposing some views, we believe that by merely owning an S&P 500 index fund or retaining “a lot of stuff” in your portfolio doesn’t automatically signify diversification.
For us to fully understand what real diversification is we have to take a step back.
Capital markets are made up of a whole world of securities, which include stocks, bonds and mutual funds. These can be domestic and international. The interpretation of an asset class is a band of securities that share similar characteristics. There are abundant asset classes, all with varying price movements. Due to the fact that asset classes have varying price movements, investors can profit by formulating a structured portfolio that is able to take advantage of as many of the asset classes as possible. By concentrating on the whole portfolio picture rather than analyzing each section individually, investors are able to realize that a properly diversified portfolio adds up to more than the sum of its elements.