Individual security selection is something our team evolved into after being disappointed by the under performance of outsourced investment solutions. Most wealth advisors hire third-party money managers in the form of mutual funds, index funds, annuities, etc. In addition to the third-party charging fees, the advisor themselves also charge asset management fees. We feel this is a form of “double dipping” for the same service and makes it difficult for the end client to earn their target rate of return. Our clients come to us for guidance not only regarding their financial plans, but the execution of that plan in the form of investing.
While we’re confident that investing isn’t rocket science, we also understand the complexity involved requires full-time attention to detail. That is why we employ a dedicated group (Research & Trading) who are dedicated to the daily research and trading of clients’ portfolios. Internally we have developed a proprietary investment policy statement that is designed to mirror index returns while managing downside risk. We do this through over all asset allocation, rebalancing, stock sector weightings, fixed income diversification, and options trading. Both of our founders (Jake Falcon, CRPC® and Cory Bittner, CRPC®) have taken the time and made the investment to complete The Investment Strategies and Portfolio Management Program offered through the University of Pennsylvania’s Wharton School of Business. Through the processes taught at Wharton, Jake and Cory have developed and tracked their own investment policy.
Wall Street has done a fine job of scaring individual investors into thinking that they need to own hundreds of different investments to mitigate portfolio risk. According to this research report (see below), a properly diversified portfolio only needs a few dozen selections to be considered diversified. As such, we don’t look to complicate matters. Instead, we keep things simple and transparent.
Brealey, Myers and Allen, Principles of Corporate Finance, New York: McGraw-Hill Irwin, (2011).
One final aspect of our individual security selection is pricing. Since we act as fiduciaries for our clients, only acting in their best interest, any time we buy or sell a security we are not compensated. We instead manage our clients’ portfolios, and if their account is worth more, we make more. If it’s worth less, well, we make less.
Abby is responsible for researching stocks and bonds, as well as keeping up to date with the current positions in our portfolio. Her role also involves tracking the performance and allocations of our portfolio.
Abby earned her Bachelor of Science in business administration with a focus in marketing from Liberty University. Abby also maintains her Series 7 General Securities license, Series 66 NASAA Uniform Combined State Law license and Accredited Asset Management Specialist (AAMS®) designation.
In her free time, Abby enjoys reading, traveling and spending time with her husband, Trey.
Matthew is responsible for researching stocks and bonds, as well as keeping up to date with the current positions in our portfolio. His role also involves tracking the performance and allocations of our portfolio.
Matthew earned his Bachelor of Science in finance with a concentration in business analytics from the University of Kansas. Matthew holds his Series 7 & 66 licenses and maintains the Accredited Asset Management Specialist (AAMS®) designation.
In his free time, Matthew enjoys watching sports, playing golf and going to the lake.