“Providing Dynamic, Disciplined, and Customized Solutions”

 

Non-Benchmark Returns

We believe that investment strategies that worked in the past may not necessarily work in the future. As a result, we focus on non-benchmark return investment management by working toward providing clients consistent returns in both up and down markets.  

Most managers adhere to the concept of “benchmark management”, or comparing portfolio performance to a benchmark or index.  This approach often works well when markets consistently trend upward.  As history has demonstrated, particularly in the last decade, there are serious consequences for relying on this pattern of continuing upward markets on growing your wealth.

As a result, we place less importance on following the performance of a benchmark than others.

Value “+” Investing

Our investment strategy is unquestionably tilted towards a value style of investing, or finding assets that are attractively priced.  However, any single style of investing can come under duress for prolonged periods of time due to the dynamic nature of markets.

As a result, disciplined strategic and tactical shifts are sometimes required.  We firmly believe that as investment managers we should be able to adapt to the changing market environment.

Therefore, we blend our value bias with momentum and growth strategies to enhance capital protection and consistency of investment returns throughout volatile markets.

 

Emotional Investing and Protecting Capital

Over the longer term, investment markets are rational.  However, from time to time, financial markets can be gripped by fear or euphoria where emotion overrides rationality. Monitoring market sentiment along with fundamental attributes of the markets ensures that we recognize the behavioural aspect to investing.

We believe that reducing exposure in response to excessive optimism and increasing exposure during periods of excessive fear allows us to capitalize on opportunity and avoid overvalued markets.  As a result, we will make the decision to protect capital by temporarily reducing exposure to asset groups where the risk outweighs the reward.

This disciplined approach, free of emotional bias, is at the core of our investment philosophy.  This sets us apart from benchmark oriented managers.

Please contact us or visit our Frequently Asked Questions page to learn more.  

To view our market commentary please visit our Pacifica Perspectives blog.