Seidman Wealth: Protect. Prosper. Peace of Mind.
Our approach to portfolio construction and investment selection is similar to the process used by the world's largest pension and endowment funds. This systematic, rigorous method is an important key to achieving investment objectives. Adherence to this process is largely why pension funds often perform significantly better than individual investors who often "chase” results or allow emotions to drive decisions.
We scour the investable universe for managers who have a strong performance track record, and a high likelihood of replicating success in the future. We craft portfolios driven by managers who have the ability to perform regardless of what is happening in equity or credit markets, generate returns in all types of environments, and hedge out some of the risk inherent in public and private markets. All of this provides a significant level of diversification, while mitigating the downside and helping achieve excess, and absolute, returns.
Relative strength is a major distinguishing aspect of what sets our allocation policy apart and enhances our ability to assess market risk, giving us insight as to when to be more aggressive or more defensive in our positioning, and to which markets. This is just one example of a broad theme — namely that we allocate funds to particular markets and areas of the world that appear to have greater return potential, while avoiding areas with greater risk. We have avoided significant areas of trouble in our portfolios — US financials in 2008, Canadian energy in 2014, for example. The old philosophy of naïve diversification — splitting the equity allocation in thirds between Canada, the US, and Europe has not been as successful as being heavier in Canada in the 08 crisis and heavier in the US in the subsequent years. We have added significant value to portfolios through our active, tactical allocation process.
Coupled with our work on manager and investment selection, we have a proven system for driving returns while simultaneously mitigating volatility. By focusing on the risk aspect, we take a prudent, conservative, thoughtful approach that first, as Hippocrates advocated, seeks to do no harm. Our portfolios are therefore more likely to withstand any eventuality — capital protected in difficult times and profit made in good times. Tax minimization is also a particular area of focus for our group, allowing clients to keep more of what they worked hard to earn.
The genius in portfolio construction is in the way different components interact and fit together. No single investment, manager or strategy makes money in every market, but by combining strategies in a calculated way, and by having greater exposure to strong markets over weak ones, the result is far greater than the sum of its parts.