At Ablemere, our first job is to know our individual client. Where is the client in his life? What are his assets, debts, goals, life circumstances, and risk tolerance?
We believe that trying to pick individual stock winners is a fool's errand. Therefore, we will seek diversification for client assets. This can involve model portfolios, electronically traded funds (ETFs), or in some cases managed mutual funds. Diversification should be not only among individual investments, but also "durational diversification", which attempts to identify the hold period(s) after which investments may be liquidated for a profit.
While we feel that predicting investment return is challenging, minimizing expenses associated with investing is possible and also imperative. We believe that Ablemere Investment Advisors offers reasonable, transparent fees. Acting in the role of advisor, part of our job is to identify, quantify, and minimize investment charges commensurate with expected return. It is our fiduciary responsibility to place our clients' needs first - even above our own. Our asset management fees are designed to keep our incentives aligned with those of the client - we grow our fees when the clients assets under management grow.
Expected return varies with risk. We also will try to identify risk vs. reward, and attempt to place clients in investments that maximize up-side while minimizing down-side.
Up-side vs. down-side may vary with how long one's time horizon may be. From time to time, Ablemere may offer model portfolios that reflect sectors of the world economy that are currently out of step with historical pricing. An example in 2009 would have been home builders in the United States. In 2015 it may have been oil prices. In both examples, many people would assume that prices would correct and eventually offer handsome profits. The challenge is having the patience (time horizon) to wait for the turn-around to actually take place. For clients for whom such investments may be suitable, Ablemere sometimes will employ dollar cost averaging to phase money in, since we do not claim to know the best time to find the lowest price.