We use low cost index funds for the bulk of our public market allocation because they provide broad diversification, keep investment costs low, and reliably capture market returns without requiring us to identify which active manager will outperform.
The evidence for active management is difficult to ignore. Across five, ten, fifteen, and twenty year periods, the large majority of active large cap funds have underperformed the S&P 500. Rather than make the foundation of the portfolio depend on consistently finding the exceptions, we use index funds as the core and reserve active risk for areas where we believe there is a stronger reason to take it.
S&P Dow Jones Indices, SPIVA U.S. Scorecard, Mid-Year 2025, all large cap funds against the S&P 500. Past performance is no guarantee of future results.
Around that index core, we make smaller allocations to sectors and long-term themes we believe can outperform. We use some of the lowest-cost sector and thematic ETFs available to implement those views. The objective is incremental outperformance, with position sizes that limit how far we can fall behind the benchmark when those views are wrong.
Public markets remain the foundation. We add private investments selectively when we believe they can improve diversification, return potential, or portfolio resilience beyond what public markets alone can provide.
Illustrative. Allocations vary by client and are not a recommendation.
A loan backed by hard assets is very different from an equity investment in a company that may still be years from profitability. This chart shows how we generally view the relative risk and return of the types of private investments we evaluate.
Illustrative positioning of asset classes relative to one another. Not a forecast of returns and not a recommendation.
We assess how much a client should invest, how the investment is expected to create value, what would need to occur for the projected outcome to be achieved, what could impair or eliminate that outcome, how long the client would be unable to access the invested funds, and what the client is expected to retain after fees and taxes.
Illustrative. The figures are examples chosen to show the effect, not the terms of any investment or a forecast of returns.
Private investments create ongoing work long after the initial investment is made. We handle that work so clients do not have to manage each investment themselves.
We maintain relationships with managers and sponsors, review new opportunities as they come across our desk, and decide which ones are strong enough to put in front of clients.
We follow a strict underwriting process for every opportunity and only recommend investments we believe are attractive enough to merit client capital.
Once a client decides to invest, we negotiate where possible for lower fees and lower investment minimums, coordinate directly with the manager, and make sure the client has everything needed to complete the subscription.
We plan ahead for expected capital calls so the necessary cash is available when it is needed. When a call comes due, we make sure it is funded correctly and on time.
We review the manager’s investor letters, statements, and other updates, then summarize how the investment is performing, what has changed, and anything else the client should know.
We work directly with the manager to collect K-1s and other tax documents as they become available, so clients are not left scrambling across different portals and managers when it is time to file.
We keep track of when distributions are expected and decide in advance where those proceeds should be reinvested, so cash does not sit idle after a distribution is received.
We will review your current portfolio, explain what we would keep or change, and show you how we would manage it going forward.