Is Your Investment Philosophy Taking Punches?


The investing world is full of great quotes on the market, investment behavior, success, and more, but in investment times like these, one of the most applicable quotes comes from an unexpected source.

“Everyone has a plan, until they get punched in the mouth.” – Mike Tyson

Every good advisor has an overall investment philosophy. The best advisors are able to stick with that investment philosophy, despite the market’s punches. Unfortunately, as we’ve seen in the first few months of the year, many have wavered when hit in the teeth.

As an RIA, we make sure our advisors and institutional partners utilize an investment philosophy based on fact. This philosophy is based on history. It’s based on analysis. And, most importantly, it’s based on a commitment to eliminating the unnecessary risks, and managing the necessary risks.

“Low-risk, low-volatility investing” has become a water-down, overused phrase. Following 2008, every investor wanted to feel safe and warm in a low-risk, low-volatility strategy while they recovered from the pain of their losses. But a decade later, with unprecedented stock market activity, the truth behind those “low-risk, low volatility” philosophies is starting to peek out as unexpected losses start to expose the true risks.

The market has punched those philosophies in the mouth, and we have seen many RIA’s and investors abandon their plans and find themselves once again chasing returns.

Our money managers are vetted through one of leading providers of investment consulting services in the country with a robust client base representing over $5 billion in assets. They bring decades of combined experience across a diverse set of backgrounds, including with top performing university endowments, large public pension systems, regional healthcare institutions, Fortune 500 corporate pension plans, and affluent families. They have served in leadership capacities including chairing the investment committee, directing traditional manager research, and directing alternative manager research at well-known national investment consulting experience consulting firms. Their intellectual integrity and unique approach translates into a compelling resource for our investors to utilize in managing their fiduciary obligations and investment programs.

These are the people that keep philosophies on track. These are the people that oversee the portfolios to ensure they reflect the philosophies. These are the people that our advisors’ clients deserve.

We believe the best way to manage risk is to measure it. This provides an optimal starting point for portfolio analysis. Fusion, along with our investment partners focus on a combination of momentum-based and values-based investment strategies with sound risk adjusted returns. This means success isn’t based on high and lows, but on the investor’s ability to find consistent success through the highs and lows.

Fusion and our affiliates take a conservative approach to portfolio and risk management. We firmly believe that while we may not be able to control the markets, we know that the markets will hit everyone in the mouth at some point, but we can control our reaction to the punch. We do that by controlling investors’ risk taken in the markets.

As we all continue to step into the ring each day, we hope to see more advisors taking a truly committed approach to their philosophies like our advisors do, because one thing is for sure: There are more punches to come, and your clients are depending on you to maintain your plan.

Is your philosophy prepared?

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