AMI'S INVESTMENT PROCESS
Our process is guided by our fiduciary duty and a strong alignment of interests with our clients. By determining an appropriate long-term investment program, clearly communicating the investment strategy, then implementing and tracking the program, we believe an investor has a higher likelihood of staying the course and achieving a successful result.
We believe all successful long-term investment plans focus on several key principles:
Don’t let short-term noise distract from the long-term strategy
There is no shortage of “professionals” dispensing advice over the financial media outlets. In a world awash in information, some accurate, some not, it is vital to have trustworthy and reliable guidance when making decisions related to investments. Making radical changes to an investment portfolio based on a hot tip, an emotional response to news, or a gut feeling are some of the potential adversaries to an investor’s long-term plan. Our preference has been to gather information, evaluate the situation, and make careful decisions that take into consideration the impact of client returns and goals.
Focus on the areas that can be controlled
Although we can’t control the wind, we can adjust the sails. We operate under the philosophy that the direction of the economy, interest rates, and stock prices are largely unpredictable over the short-term. However, making small, repeatable shifts that compound into positive results over time is something within our control. This includes making tactical adjustments at the margin when opportunities arise, not abandoning a strategic game plan when times get tough, and using periodic rebalancing as a disciplined approach to buying low and selling high.
Manage efficient portfolios and avoid paying excessive fees
AMI’s investment professionals are invested alongside our clients and attempt to set a high hurdle for investment activities. We focus on disciplined expense management, support our decision making process with research, while also upholding our fiduciary duty to avoid any conflicts of interests. AMI’s focus is to design and manage portfolios that offer the highest expected return for a given level of risk.
Always be mindful of the risks and avoid chasing returns
A prudently structured portfolio should manage the risks that the good times and bad times don’t last forever. Chasing performance by buying the leaders of the moment and selling the laggards to keep pace has been a recipe for lackluster future returns. AMI portfolios seek to offer broad diversification while always evaluating the ever-present risks.
“It’s better to structure a portfolio that can succeed in a variety of environments versus building the perfect portfolio for one outcome”
Howard Marks, Oaktree CapitAL