Investors who follow a plan have a higher probability of achieving their goals than those who act on their emotions or make frequent changes based on the events of the day. Therefore, we created systematic risk management strategies so investors can handle periodic volatility without abandoning their investment plan.

As a firm, when building client portfolios, we strive for 3 things:

  1. Participation in rising markets.
  2. Preservation in declining markets.
  3. Loss mitigation.

How do we accomplish this? For years we have observed that a key statistic in selecting an investment is upside/downside capture ratio, which measures the degree to which a portfolio has under-performed or outperformed a market benchmark based on monthly returns during periods of market highs and lows.

You can see from the illustration that 60% upside and the 40% downside performs better than the actual index itself.  If the percentage decline of the portfolio is less than that of the market, any percentage gain above that decline would result in out-performance. This provides the potential of superior performance over-time with less portfolio volatility. *

Central tenets of our investment process are portfolio construction and risk management. We look to balance shorter-term fears with longer-term needs and objectives, so that clients can remain comfortably committed to their plan. A balanced investment plan and consistent communication are the tools we employ to help our clients work toward their financial goals.

If you are an investor with total investments of $100,000 or more and are interested in managing risk while still having the opportunity for your portfolio to grow, talk to us today.

*All investing involves risk including loss of principal. No strategy assures success or protects against loss. Content in this material including any attachments, is for general information only and not intended to provide specific advice of recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

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Cedarburg, WI 53012

Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.

*All investing involves risk including loss of principal. No strategy assures success or protects against loss.

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: WI and MN.