Toll Free: 866-871-0334
333 East Main Street Louisville, Kentucky 40202
Implementing a long term, high quality investment philosophy is crucial to building and preserving asset value. At Atlas Brown, we strive to deliver superior, sustainable investment results by creating portfolios that integrate your current investments with traditional and alternative strategies which we selectively blend along with world-class, third party separate account managers. Our longer-term view of the investment cycle is one where we employ multiple asset classes and styles, both domestic and foreign, traditional and otherwise, often referred to as a multidisciplinary approach.
Our portfolio managers will assess your current portfolio within the framework of your Investment Policy Statement and recommend a strategy and transition plan that comfortably meets your objectives. Your investments will be managed by Atlas Brown’s experienced portfolio management team but we may selectively engage third-party portfolio managers, including certain alternative strategy managers, depending upon the circumstances and the risk/reward parameters for each client. So why might we do this?
Investment managers at the largest pension plans, endowments, and foundations recognized many years ago that prudent investing and successful results require very broad portfolio diversification. In fact, historical research has shown that as much as 92% of long-term investment returns are the result of the optimal blend of highly uncorrelated asset classes and styles, rather than individual security selection or market timing.
All asset classes and styles move in and out of favor over time depending on macroeconomic and market conditions. Sometimes certain styles can become popular whereby additional demand can inflate valuations to extreme levels, thereby creating price bubbles. Other times, the reverse is true, resulting in depressed prices. Hence if portfolios lack appropriate diversification at a time when a particular investment style is out of favor, the returns on that portfolio may lag significantly in comparison to other investment alternatives or strategies.
We also use a variety of non-traditional asset classes as well. Our research has shown us that select and deliberate use of commodities, such as minerals, natural resources, and real estate, along with carefully identified opportunities within both the private equity and hedge fund sectors also offer diversified exposures to growth sectors of their respective markets. The end result is a suite of customized portfolios which will hold a multitude of different asset classes, comprising growth or value biases and which are infused with the select use of targeted, non-correlated assets such as commodities.
The final product may also be complemented with private equity opportunities and certain hedge fund strategies, all designed to create a highly diversified portfolio within the over-arching framework of risk-adjusted performance. Our ability to blend a multitude of styles, along with their respective risk (price volatility) and reward (investment returns) characteristics is another part of the Atlas Brown approach. So while the value of a multidisciplinary portfolio will also vary over time, price volatility is less extreme than any single investment style and the likelihood for steady, long-term growth is greatly enhanced.