be proactive—and secure with a risk managed portfolio.
The viewpoint that asset management and risk management are one and the same is swiftly gaining traction among investors and advisors alike. Risk management done right is more important than ever in today’s international multichannel environment.
In our view, risk is not to be feared, but rather clearly identified, fully understood, rigorously analyzed, and expertly exploited.
At Brinton Eaton, we have designed a three-layered risk management strategy building upon traditional asset allocation encompassing the following:
Each addresses a unique aspect of risk in different market scenarios:
- In normal markets, dynamic asset allocation and rebalancing helps mitigate the erosion in returns resulting from volatility and actually exploits volatility by imposing a systematic “buy low, sell high” discipline.
- In bear markets, momentum-based sector rotation strategies help avoid exposure to protracted declines in specific sectors and the overall market.
- In crash markets, our innovative safety-net protection benefits from the spikes in volatility that typically accompany such declines, while not creating a drag on portfolio performance during more normal market environments. This may not work in environment where declines are not accompanied by normal volatility. See more on portfolio protection.
The objective? To have all these elements to work together in an integrated way within your portfolio to provide state-of-the-art protection with little or no loss of performance.
“Investment risk management is a journey, not a destination. At Brinton Eaton, we are committed to this continuous search.”
–Jerry Miccolis, Chief Investment Officer, Brinton Eaton
