Absolute Return Strategy

The objective of this proactive strategy is to seek a long-term return above the S&P 500 Index or stated benchmark. I pursue money-making ideas for my client portfolios that include selecting individual stocks, exchange-trade funds, preferred securities, and mutual funds. This strategy is a customized investment portfolio that is tailored to the unique risk and risk objectives of each client.

I identify new investment opportunities with the goal to maximize investment performance. This approach focuses on relative return vs. a targeted benchmark. I apply a consistent, disciplined value approach to portfolio management with the goal of increasing risk-adjusted returns. Since this approach can be more volatile, I will use various portfolio management techniques to reduce risk.

Manage Portfolio Risk

This approach to investing is both proactive and results-oriented. This absolute return strategy seeks to outperform the S&P 500 by uncovering new investment opportunities through fundamental research. I DO NOT invest in model portfolios that in my opinion are over-diversified, and not customized to the client. This strategy uses a core-satellite approach to portfolio construction. Each portfolio is constructed using two components – a strategic allocation which replicates market risk and return such as the S&P 500 Index ETF and a satellite allocation comprised of individual stocks. These satellite investments are purchased with the objective to generate returns in excess of the overall market (the alpha). The core-satellite portfolios are customized to each clients risk tolerance, goals, and values.

Thematic, Unconstrained Approach 

This unconstrained strategy to asset allocation focuses on long-term macroeconomic trends that can produce attractive risk-adjusted returns over a full market cycle.  I believe that a better way to invest is by applying a thematic approach to wealth management. This strategy does not build blocks based on historical risk of weighing stocks vs. bonds. Rather I select the investments that will benefit from long-term support of mega-trends and underlying economic conditions. Thematic investing seeks to capitalize on long-term trends across economic sectors and geographic boundaries. The foundation of this strategy is the belief that fundamental analysis and a careful assessment of market is risk is the best way to manage wealth.

I will concentrate positions where is makes sense and look for stocks with significant appreciation potential. After the appropriate asset allocation is chosen, I provide ongoing oversight and make changes as necessary.

If you would like to know more about how my absolute return approach can support your investment goals, feel free to send an email to mitch@cgfadvisor.com or schedule a meeting.

If you prefer a more traditional passive allocation asset allocation strategy, you can click here to learn more about my low cost, Vanguard and SPDR ETF strategy.

 

There is no assurance any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss.