Recommended
More Related Content
Recently uploaded
Recently uploaded (20)
Featured
Featured (20)
Market Update with Chris Gauthier, CFA - Stonehearth Capital Management's Semi-Annual Breakfast Seminar May 16th, 2015
- 2. SCM Portfolio Construction • Investment Philosophy • Asset Allocation • Security Selection
- 3. Investment Philosophy • Long Term Full Cycle Investors • Manage Risk not Return • Don’t Lose the Money • Diversification
- 4. Asset Allocation • 3 Risk Levels = 3 Portfolios Conservative Moderate Aggressive
- 5. 60/40 – Don’t Fix What Isn’t Broken • 60% EQUITY •45% US Equity •15% INTL Equity • 40% FIXED INCOME Asset Allocation
- 6. Asset Class Moderate Portfolio Market Portfolio Relative ALTERNATIVE 30% 0% +30% US EQUITY 37% 45% - 8% INTL EQUITY 20% 15% +5% FIXED INCOME 13% 40% - 27% Asset Allocation
- 7. Security Selection Alternative • Absolute Return • Expected Return is > Inflation (Net of All Fees) • Long Term Investment Themes • Help Reduce Drawdowns
- 8. Asset Class Moderate Portfolio Market Portfolio Relative US EQUITY 37% 45% - 8% Asset Allocation
- 9. Security Selection US Equity • Factor Based (Please don’t call it smart beta) • Expected Return is > US Equity • Long Term Investment Themes • Risk Management within the Portfolio
- 10. Asset Class Moderate Portfolio Market Portfolio Relative INTL EQUITY 20% 15% +5% Asset Allocation
- 11. Security Selection International Equity • Factor Based • Expected Return is > Intl. Equity • Long Term Investment Themes • Risk Management within the Portfolio
- 12. Asset Class Moderate Portfolio Market Portfolio Relative FIXED INCOME 13% 40% - 27% Asset Allocation
- 13. Security Selection Fixed Income • Factor Based • Expected Return is > Fixed Income • Long Term Investment Themes • Risk Management within the Portfolio
- 14. THANK YOU! If you would like more information or have any questions or concerns pertaining to this presentation, please contact our office. We would be happy to speak with you. Stonehearth Capital Management 199 Rosewood Drive, Suite 200 Danvers, MA 01923 Phone: (978) 624-3000 Fax: (978) 624-3007 info@stonehearthcapital.com
- 15. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. Stonehearth Capital Management, LLC is a Registered Investment Advisor. Registration does not imply a certain level of skill or training. Disclosure
Editor's Notes
- 3 pieces to Building Portfolios. Everything starts with a philosophy or belief system.
- Buffet rule Lose 20 need to gain 25 Your goals are not measured in days or weeks
- Every client of SCM has a portfolio that is a variant of the 3 risk levels. 5-7 8-11 11-15 S&P 18
- 11% Average Investor
- Not Linear but iterative. Does not fit into a presentation style 1981 18% today 3%.
- Outperform over time. Academic and my experience. Must be lterm evidence of +returns, Can be captured by trading liquid instruments. Need to know the why it will persist into the future.
- 2 factor Interest rate exposure( duration) & Credit risk.