PHILOSOPHY

Values That Drive Your Strategy

My Image

Know What You Own and Why You Own it

Know What You Own
and Why You Own it

Know What You Own
and Why You Own it

Our investment philosophy is based upon a scientific approach to disciplined investing established under the Modern Portfolio Theory. We believe in a long-term strategic approach to asset allocation with tactical adjustments as secular shifts occur in the financial markets. Academic research suggests that the decision to allocate total assets among various asset classes will outweigh security selection and other decisions that impact portfolio performance. We tend to favor active versus passive management and strive to add value on a risk adjusted basis. Our basic tenets are global asset allocation, absolute returns, risk management and tax efficiency.

Interconnection of global economies has become more prevalent than ever when it comes to constructing investment portfolios. While the United States is still considered the driving force behind the global economy, other parts of the world are experiencing tremendous economic growth and development. At Commons Capital Advisors, we believe this changing global landscape presents investors with an unprecedented opportunity to widen their investment scope, adopting a global strategy as the foundation of their portfolios.

Our investment philosophy is based upon a scientific approach to disciplined investing established under the Modern Portfolio Theory. We believe in a long-term strategic approach to asset allocation with tactical adjustments as secular shifts occur in the financial markets. Academic research suggests that the decision to allocate total assets among various asset classes will outweigh security selection and other decisions that impact portfolio performance. We tend to favor active versus passive management and strive to add value on a risk adjusted basis. Our basic tenets are global asset allocation, absolute returns, risk management and tax efficiency.

Interconnection of global economies has become more prevalent than ever when it comes to constructing investment portfolios. While the United States is still considered the driving force behind the global economy, other parts of the world are experiencing tremendous economic growth and development. At Commons Capital Advisors, we believe this changing global landscape presents investors with an unprecedented opportunity to widen their investment scope, adopting a global strategy as the foundation of their portfolios.

Our investment philosophy is based upon a scientific approach to disciplined investing established under the Modern Portfolio Theory. We believe in a long-term strategic approach to asset allocation with tactical adjustments as secular shifts occur in the financial markets. Academic research suggests that the decision to allocate total assets among various asset classes will outweigh security selection and other decisions that impact portfolio performance. We tend to favor active versus passive management and strive to add value on a risk adjusted basis. Our basic tenets are global asset allocation, absolute returns, risk management and tax efficiency.

Interconnection of global economies has become more prevalent than ever when it comes to constructing investment portfolios. While the United States is still considered the driving force behind the global economy, other parts of the world are experiencing tremendous economic growth and development. At Commons Capital Advisors, we believe this changing global landscape presents investors with an unprecedented opportunity to widen their investment scope, adopting a global strategy as the foundation of their portfolios.

Objectivity, expertise and independence are all absolutely necessary in order to design, implement and monitor a portfolio that is appropriate for your needs, now and in the future.

Equity Philosophy

Our stock portfolios are constructed using a “bottom up” sector framework, where we de-emphasize the significance of economic and market cycles. Our approach focuses on the analysis of individual stocks and therefore we concentrate on a specific company rather than on the industry in which that company operates or on the economy as a whole. We use the ten GICS (Global Industry Classification Standard) sectors that provide the structure for all S&P indices, and are widely accepted as an industry benchmark by investors in the U.S. and around the world.

Our stock portfolios are constructed using a “bottom up” sector framework, where we de-emphasize the significance of economic and market cycles. Our approach focuses on the analysis of individual stocks and therefore we concentrate on a specific company rather than on the industry in which that company operates or on the economy as a whole. We use the ten GICS (Global Industry Classification Standard) sectors that provide the structure for all S&P indices, and are widely accepted as an industry benchmark by investors in the U.S. and around the world.

Fixed Income Philosophy

The primary objective is current income and reasonable stability of principal. We don’t believe in trying to outguess interest rate moves, a high risk strategy with little chance of good long-term results. Fixed income can be used as a primary driver to generate desired lifestyle income. Historically, stocks have offered higher returns than bonds, however, fixed income investments are generally less volatile.

The primary objective is current income and reasonable stability of principal. We don’t believe in trying to outguess interest rate moves, a high risk strategy with little chance of good long-term results. Fixed income can be used as a primary driver to generate desired lifestyle income. Historically, stocks have offered higher returns than bonds, however, fixed income investments are generally less volatile.

International Equity Philosophy

Our objective is to provide long-term growth of capital by investing in a diversified portfolio of international equity securities and exchange traded funds whose issuers are considered to have strong earnings momentum. We focus on companies that have experienced above-average, long-term growth in earnings and have strong prospects for future growth.

Our objective is to provide long-term growth of capital by investing in a diversified portfolio of international equity securities and exchange traded funds whose issuers are considered to have strong earnings momentum. We focus on companies that have experienced above-average, long-term growth in earnings and have strong prospects for future growth.

Alternative Investments Philosophy

Alternative investments exhibit different characteristics in terms of volatility, liquidity and performance than certain other traditional investments. Allocations to alternative investments may improve your risk-adjusted returns in certain kinds of market environments, however, hey are typically only available to accredited investors. These vehicles have demonstrated a high degree of risk that may make them unsuitable.

Alternative investments exhibit different characteristics in terms of volatility, liquidity and performance than certain other traditional investments. Allocations to alternative investments may improve your risk-adjusted returns in certain kinds of market environments, however, hey are typically only available to accredited investors. These vehicles have demonstrated a high degree of risk that may make them unsuitable.

We are diligent about understanding and measuring the sources of risk so they can be managed appropriately.

 Utilize the Modern Portfolio Theory to create an ”efficient portfolio”

 Overweight and underweight asset classes and sectors

 Pair active and passive strategies

 Limit position size — avoid concentration

 Daily monitoring at a granular level

 Thorough time-tested fundamental and technical analysis

 Hedging risk during significant downturns

We are diligent about understanding and measuring the sources of risk so they can be managed appropriately.

 Utilize the Modern Portfolio Theory to create an ”efficient portfolio”

 Overweight and underweight asset classes and sectors

 Pair active and passive strategies

 Limit position size — avoid concentration

 Daily monitoring at a granular level

 Thorough time-tested fundamental and technical analysis

 Hedging risk during significant downturns

           

© 2018 Commons Capital Advisors, LLC.
All rights reserved.

         

© 2018 Commons Capital Advisors, LLC. All rights reserved.