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Were you involved in the bear markets that occurred in 2002-03 and 2008, and which is in effect to a lesser extent today? Did your asset management professional recommend that you think long term, only to watch your portfolio shrink substantially? Is he or she doing anything to protect your interests in the event of another severe market downturn?
Financial Advising and Consulting
More than likely, your financial consultant recommended spreading your investments across a variety of different asset classes, a strategy known as “asset allocation.” He or she also probably advised you to stay invested even during those severe bear markets – the “buy and hold” philosophy that has been around for decades. Does that approach really make sense?
There is a better way.
South Beach Capital Management employs an active approach to asset management, meaning that every asset has an entry point as well as a selling point. We thoroughly track each investment and do what the trends tell us to do – sell when it is time to sell and buy when it is time to by. That way we can help our clients avoid experiencing crushing losses.
A Proactive Approach to Investment Services
The asset allocation investment strategy fails to provide meaningful risk management; in many cases, it merely creates multiple different ways for an investor to lose money. A savvy investment strategy – such as the one we use at South Beach Capital – contains a sell discipline, not merely “buy and hold.” If an advisor relies solely on asset allocation as a risk management tool, he or she is basically setting up clients to fail.
At South Beach, we believe strongly in addressing our clients’ concerns and proactively managing their risks. Instead of the traditional “buy and hold” approach, we employ thorough analysis of each company in which we invest. We employ an active investment strategy, looking at several characteristics of a company and determining its upside from a valuation standpoint. Then, we make a decision to buy or sell based on those characteristics. Again, when market trends say, “buy,” we buy. When they say, “sell,” we sell.
Learning From History
Take the stock market plunge in 2008 as an example. The “stay the course” asset management philosophy pushed by a great many financial advisors led to many investors losing 30, 40 or even 50 percent of the value of their portfolio. Many people who planned on retiring and living off their investment money had to work several additional years as a result.
The South Beach Capital Difference
At South Beach Capital, we put the interests of clients ahead of our own. If you are looking for an asset management professional who will employ an active investment strategy on your behalf, look no further. Call us at 206-778-4826 or contact us online to learn more.