Private Client Investment Management Methodology

Investment Management Pyramid
Investment Management Pyramid

Asset allocation

At GP, understanding the optimal asset allocation for each client is paramount in establishing and maintaining the correct path and guidelines for the portfolio. Asset allocation is the balance between asset classes such as equities, fixed income, cash and other assets. Getting it right starts the investment management process on the right foot, getting it wrong makes it difficult to get most other aspects on track. Proper diversification at the individual security level is also a crucial component of the asset allocation process. Correspondingly, asset allocation resides at the top of GP's Investment Management Pyramid.

Once asset allocation is established, GP focuses on a multitude of other factors and processes that result in the decisions concerning security selection, price and timing. We continue our method as we move down the Investment Management Pyramid.

Macro Economics & Sector/ Industry Rotation

Understanding global macro-economic environments and how their changes impact the investment landscape is critical. Ultimately, these affect which sectors and industries will tend to do well and which will not in current economic settings. At GP, we believe that sector rotation is a critical component for managing the equity portion of our client portfolios. As such, we generally tend to overweight our level of investment in sectors we believe will perform well, and underweight those that we believe will not.

Fundamentals & Performance History

As we continue our search for suitable equity investments, GP screens for companies based on fundamentals and technical history. Earnings and positive stock price performance remain crucial components in security selection.

Technical Analysis, Appreciation & Stop Loss Targets

Finally we use technical analysis, appreciation targets and stop loss targets in the execution phases. These processes establish suitable entry points on pricing and timing, as well as potential upside and downside exit strategies; all of which remain important components of sound portfolio risk management.