SOUND Investment Fundamentals
Investment Concept
Robert Dalldorf as portfolio manager for Clear Harbor embraces an investment strategy based upon sound investment fundamentals, andis implemented and maintained through a well-defined process.
Our asset allocation strategy is driven by client objectives. This translates into and drives the relationship of "relative return" to "yield driven" assets.
Our role in this part of the process is to interpret qualitative financial goals as presented by our client and turn them into quantitative investment policy decisions. This then drives the investment process.
A good investment policy sets asset allocation targets based upon financial goals rather than emotional interpretations of market factors. After all, the investment process is long-term and thus should be viewed as such. Working with a top-down allocation process provides a framework for the security selection and management process. Investment policy does change over time; however, most changes occur due to "client events" such as retirement, inheritance, business changes, and other financial events rather than market events.
Asset Allocation Strategy - A Closer Look
Within the US and International equity markets, there is clear evidence of stock characteristics which enhance returns. By tilting portfolios toward these characteristics, we can enhance returns because these characteristics are true risk factors. These factors have been clearly identified by academic research and ultimately provide the basis for building a true "style diversified portfolio".
Robert Dalldorf, as portfolio manager for Clear Harbor,implements his equity program by combining a beta strategy (high correlation to the S&P 500) that is designed to be tax efficient and dividend-oriented coupled with our factor strategies. The goal is a more efficient, diversified portfolio.