Asset allocation is one of the most important parts of an overall Global Allocation Strategies, but we still subscribe to the notion that choosing exceptional underlying managers in the long run can produce added value.
We take great pride in our due diligence and evaluation process of the various managers as well as our continual monitoring of their performance and changes to the underlying investments. It is this meticulous attention to detail that helps us choose from the overwhelming number of investment choices within marketplace.
Below we have listed the important points we consider prior to making an investment in the various Funds, ETFs and other securities we invest for our clients.
- Experienced Management: Although ETF‘s are excellent for tracking a particular index, mutual funds offer portfolio management from the best in the business. Many of these managers have graduated from prestigious academic environments and have well over 20 30 years of experience with top level firms. They have access to internal research reports not offered to the public and teams of analysts working to uncover investment opportunities. Choosing a manager needs to be carefully considered since the number of mutual funds offered, according to the National
Mutual Fund Associations, reached 66,988 in the first quarter of 2009. - Diversification: Mutual funds provide an easy way to consolidate assets into a few specific investments
while providing a range of diversification across broad market sectors. - Capturing Inefficiencies: In certain sectors and styles it is better to have a professional manager
who knows the market and how to take advantage of inefficiencies. Good managers have a
better chance to profit in areas such as small-cap and international stocks among others.
Some additional points that we analyze and compare:
- Performance
- Objective
- Cost
- Experience
- Assets under management (AUM)
- Tracking error
- Tax Management
- Style Drift
The Horowitz & Company Global Allocation Strategies employ an asset allocation strategy that is constantly reassessed and tweaked in an attempt to make it relevant for the current market environment.
Much of our allocation decisions are dependent on our macro-economic research and outlook. The current investment environment is constantly changing and each client‘s needs are different from the other. It is of utmost importance that we take into consideration each client‘s risk tolerance, financial goals, and time horizon prior to investing in any strategy, but the basic theory and philosophical approach is imperative to understand.
We therefore believe that a long term investing approach using uncorrelated asset classes is the best method for mitigating the idiosyncratic risks inherent while attempting to sidestep the systemic risks of the overall market with this particular strategy.
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* Horowitz & Company, Inc. is registered as an investment advisor with the State of Florida and conducts business in other states where it is properly registered or is excluded from registration requirements. Registration does not imply any level of skill or training. (Additional Disclosures and Terms of Use)
