All of the Sungarden® portfolio strategies are managed with an emphasis on the following:
Achieve results on a risk-adjusted basis. We don’t try to ebb and flow with the S&P 500 or other “headline” indexes. Thus, our strategies will often perform very differently than those indexes. Investment geeks call this “low correlation.”
Invest with at least a 3-year time horizon. While we make adjustments to our holdings and weightings whenever we think it improves the portfolio, evaluating total portfolio performance for periods under 3-years can be short-sighted. Different investment ideas develop over different time frames.
Emphasize our long-term investment themes. We divide the stock market into two camps: the first contains the businesses, industries and long-term trends we have the most comfort with as we contemplate the future. The second is everything else. We focus 100% of our time on how to invest within the first group. That tends to keep us away from some “hot” trends that do well for a while but eventually flame out.
Our investment style requires patience. With the speculative nature of today’s financial media and many investors, patience can be difficult. That is why we communicate regularly with our clients, so they understand what decisions are being made and why.
Play offense AND defense. Over our careers, we have seen that most investment managers know how to play offense, but few know how to play defense. As the sports expression goes, “defense wins championships” and it also preserves capital during the inevitable bear market cycles that occur. The further one goes in life, the more critical it is to have a disciplined approach to guarding against major losses that can have an impact on your lifestyle.
Please click on one of the links below for more detail on a specific strategy: