At Fisher Equity Advisors, we believe that active portfolio management gives our clients an opportunity for positive results. With an actively managed portfolio, a manager tries to beat the performance of a given benchmark index by using his/her best judgments in selecting individual securities and deciding when to buy and sell them. A passively managed portfolio attempts to match the benchmark performance and in the process, lower expenses that can lower an investor’s rate of return. We believe that the positives of active portfolio management have the potential to outweigh the negatives.
We strongly believe that picking sound securities, closely watching and taking advantage of market trends and at the same time focusing on risk management, an investment manager can generate returns that could outperform benchmark indexes. This could be accomplished by adding extra weight to certain sectors under certain conditions in the stock market more so than the benchmark index or by having a manager control overall risk by allocating a larger percentage of a portfolio for a short period of time to more conservative investments such as cash alternatives.
Our goal is to pick the appropriate money managers and then “ride herd” over them. John Wayne would be proud. We have computer models to identify managers from a universe of more than 6000 for the various asset classifications. When we incorporate the managers into our clients’ asset allocation models we are not afraid to change managers if we feel that they are not performing as well as we think they might.
In addition, we believe that it’s important to have strategies that may run contrary to market trends. These strategies may include having the ability to move 100% to cash alternatives to having strategies designed to produce positive returns in a down market. It is also necessary to have opportunities available to our clients that have little or no correlation to the ups and downs of the markets. Those opportunities may include real estate, currencies, commodities, oil and gas, royalties and debt instruments.
Some of our preferred managers include but are not limited to:
- Eqis Capital
- Envestnet
- Purcell Advisory Services
- Hines Real Estate
- J.P.Turner & Company Capital Management, LLC.
- Folio Institutional
- Noble Royalties
Let us know what you think.
