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 Investment Management Process
Empire’s Investment Management process centers around:
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Account Type & Objectives.
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Global Asset Allocation. |
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Investment Selection. |
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Controlling Cost & Taxes. |
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Reinvestment of Investment Income. |
Asset allocation is the primary determinant of investment return. Clients will receive a globally diversified investment portfolio consisting of asset classes that have consistently demonstrated to provide positive returns, as measured by their geometric mean, and reasonable volatility, as measured by their standard deviation. Portfolio weightings are then adjusted and
managed based on projected return and outlook. Detailed due diligence is conducted to determine which investment holdings maximize return and minimize cost within each particular asset class.
Additionally, to maximize return, control what one can – simply stated, fees and taxes are a cash outflow from an investment account. The more cash that leaves the account, the less there is available to compound. Equate this to not turning the ball over, hitting free throws, and outrebounding your opponent. It’s not glamourous, it takes tireless effort, and doesn’t always show up in the stat sheet; however, they are an important determinant in who wins or loses the game. Similarly, controlling fees and taxes are important components of investment returns. To do this, asset location and management style should be aligned with account type.
Finally, ongoing management is keenly focused on mean reversion and the how, when and where investment income is reinvested.
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