Difficult as it may be for some to agree on what represents the best approach to investing, ultimately, the overarching aim is to emerge from a venture with more than that with which one enters having exposed one's capital to as little risk as possible.
Without guidance, however, precious few manage to achieve this feat. A common attribute among the most successful investors is the innate ability to see and appreciate the "bigger picture". It is the ability to realize that if a market's rise is excessive, greed will compel speculators to jump on the bandwagon reasoning that they only have to be faster than the slowest investor to avoid losing money when investors rush for the exits. We prefer to avoid these situations.
Wainwright Marks Management's capacity for seeing markets in this way comes as a direct consequence of experience of having thrived through both bull and bear markets.
We pride ourselves on the efficacy and accuracy of our research operations and our ability to time entries and exits into various assets.
We avoid the exotic, in-vogue financial instruments like derivatives for anything other than hedging positions and limiting exposure during brief periods of high volatility and even then, we are in and out before the market even knows we were ever there.
Modern Portfolio Theory says that the best way to ease risk within a portfolio is to use broad diversification between asset classes.
No one asset class can boast the ability to realize the best results over all time periods so, clearly, relying on a single asset class in a portfolio considerably raises the risk of suffering a calamitous loss of capital.
This is considered by many to be the gold-standard of investment management services. The entire resources of the practice converge to ensure that from analysis to monitoring, your capital is in the best hands.
With limited power of attorney granted by you, your portfolio manager continually monitors your portfolio, buying and selling assets as and when necessary, taking advantage of opportunities in the market as soon as they arise.
This service is similar to the discretionary service with the sole exception that the portfolio manager must refer to you for authorization prior to conducting any transaction on your behalf.
This will include the purchase or sale of stocks, bonds, reinvestment of dividends (where applicable) and other actions. This service is usually attractive to the more seasoned investor who feels more comfortable holding the final say on his or her investments.
How we go about the business of investing is almost as important as our performance.
If we fail to learn as much about you, our client, as we possibly can, we may inadvertently overlook an area that could benefit from our attention. Worse still, we could miss an opportunity to prevent a loss.
With the humble cash deposit at a main street bank yielding next to nothing, today's investment environment demands that investors – sophisticated or otherwise – must expose their capital to greater risk than ever before.