Philosophy
We subscribe to the following philosophy when it comes to investment management:
"The risks and uncertainties will be higher, in general, for the new economies of the brave new world of the space age technologies of the 21st Century, as a whole, relative to what we have experienced in the 20th Century. Business models may change within the context of the environment; technology life cycles may vary. The concept of risk reduction by diversification, i.e. portfolio, is more applicable than ever.
The quality of the portfolio, over any chosen period of time, should be measured relative to the market return over that period of time.
Significant gains or losses may occur in relatively short time intervals of substantial rises or declines, to be able to avoid much of the losses during periods in which markets suffer substantial downturns is already out-competing the market on a risk adjusted basis. Our philosophy is to outperform the market with a conservative approach by taking well-managed risks. It's where professional management, ours, earns our keeps.
Markets do not go up forever; there will be ups and also downs. The general expectation for the market to go up over a sufficiently long period of time may be valid, but in the long run, we may all be dead, to quote the famous economist John Maynard Keynes. Over our life times, we want to protect our investments or assets and at the very least expect a return that is both reasonable, and competitive relative to the market over such a period of time, especially after giving considerations to real return after inflation vs. nominal return.
Whether you are interested in capital conservation with fixed income streams, or capital appreciation with reasonable real returns that are competitive over time, our professional attentions and risks management will help you avoid a large portion of the losses when market suffers major downturns and capture a major portion of the gains when market rises over time. We believe, over a reasonable period of time, such a philosophy will produce results that surpass the market as a whole.
Unlike many of the mutual fund companies in the financial services or investment management industry, we do not feel that a mandate to be at full or near full investment in equities at all times is advisable for the 21st Century. We will be quite flexible in terms of our investment decisions vis-a-vis market conditions, economic fundamentals and risks, with both fixed-incomes and equities, individual stocks and bonds, or mutual funds. As a matter of philosophy, we do not normally, but may at times out of necessary prudence, take a minor position in commodities, precious metals, or financial derivatives for strictly hedging purposes."
