INVESTING WITH CONFIDENCE
The biggest obstacle to reaching one’s investment goals is a misalignment between goals and risk. Risk is not underperforming the market; risk is falling short of your goals.
At North American Management, we take the time up front to understand your goals, and design a detailed financial plan that defines your financial objectives. We support your goals with carefully crafted investment strategies that balance return as well as risk. While informed by academic theory and institutional-quality research, our process is continuously evolving. We rely on judgment, experience, and a long-term investment bias that avoids getting caught up in daily emotion. Our asset allocation, security selection, and portfolio construction process is rigorous, independent, disciplined, and proactive.
- Since variability of returns can be largely explained by asset allocation policy, this is the framework that aligns a portfolio with your goals, risk tolerance, and time horizon.
- We believe it is preferable to set asset allocations appropriate to your unique circumstances and to construct diversified portfolios with limited market timing.
Security and manager selection
- To populate the various asset classes, we combine individual security selection with external managers to improve risk/return characteristics and provide the appropriate level of diversification.
- For individual security selection within equities we seek to identify and invest in a select number of high quality, attractively priced U.S. stocks that we believe have the potential to deliver solid returns.
- We complement these positions with external managers who have specialized skills to exploit opportunities in markets where they have distinct competitive advantages.
- Typically, our external managers include specialists in international and emerging markets, small cap equities, alternative investments including hedge funds, and most areas of fixed income.
Portfolio construction and monitoring
- Portfolio construction helps ensure that portfolios are appropriately allocated according to your personal needs. We follow a personalized process, guided by your unique needs, goals, and risk considerations.
- Our portfolio monitoring process ensures continuous and disciplined adherence to stated investment objectives, risk parameters, and allocation decisions.