Our Investment Philosophy

A good portfolio is more than a long list of good stocks and bonds. It is a balanced whole, providing the investor with protections and opportunities with respect to a wide range of contingencies. Harry Markowitz

American Economist

The HCWM Difference in Philosophy:

There is a trend in our industry, where more and more investment firms are deciding to outsource your account’s portfolio management, to 3rd party money managers. By doing this, they aim their focus on acquiring more clients. But if they are only focused on building their client base, are they really serving as an advisor, or merely as an asset gatherer? At Hunt Country Wealth Management, we take our responsibility to serve as your advisor seriously. We never outsource our investment management to 3rd party managers. By doing that, we offer more transparency to your accounts, control (quicker changes if needed based on the market), more flexibility for customization, and clear answers to why your investments were chosen for your unique situation. Is your advisor trained to manage your portfolio?

We base our investment philosophy on the Nobel-Prize-winning Modern Portfolio Theory (MPT). It is a framework for designing an investment portfolio which achieves the maximum return with the minimal amount of risk. It is the basis for asset allocation and proper diversification across many different types of assets, in a specific combination, to give you the best return for the risk you are taking. This theory was pioneered by Harry Markowitz in his paper “Portfolio Selection,” published in 1952 by the Journal of Finance, and is still widely accepted and the basis for most experienced investment managers.

Many Ivy League Institutions, including Harvard & Yale, utilize an improvement on MPT by adding alternative investments as a portion of the portfolio to further reduce risk and potentially enhance returns. The thought is alternative investments give the portfolio the opportunity to improve long-term return performance. We agree with this improvement to the base theory and believe that having a portfolio with alternatives may be right for you. Alternative investments include real assets like real estate, precious metals, commodities, etc.

The result is you have a portfolio based on sound investment theory and built for the present and the future, not just what has worked in the past.

Investment Philosophy Details

Monitoring

We believe the best investors don’t actively adjust their investments on a short-term basis. We don’t ride the wave of the financial news media and make knee-jerk reactions. We don’t get too high in good times or too low in bad. We know investing is a long-term commitment. We do a thorough review of each investment in the portfolio on an annual basis to make sure it’s still the best available and that it’s still doing the job. We believe annual rebalancing is the optimal amount of time to understand what is doing well and what is not. We capture gains from our winners and put them into the other funds. This is a disciplined way of the old saying “Sell high, buy low.” The goal of the annual review is also to keep your portfolio aligned with the risk and return plan we initially design to enhance return while reducing risk.

 Investment Details

At Hunt Country Wealth Management we take a top-down approach, meaning we start with your goals and objectives and then we build a strategy around that.

1.) We clearly define your risk and return expectations and goals.

2.) Depending on your overall risk and requirement level, we select the amount that needs to be allocated into each asset class, stocks, bonds and alternatives.

3.) Third, we select sub-asset classes to fill those categories: stock (large, mid, small, international emerging markets, etc.), bonds (varying types) and alternatives.

4.) Finally, we select the best funds available to complete the job we need them to fill within those roles.

The result is that we start with over 8,000 investment choices and narrow it down to a portfolio which we believe is the ultimate portfolio, created specifically for you.

Our fiduciary duty is to you and your best interest. There is never a commission structure or decision made because of proprietary relationships. 

Additional Benefits of Working with HCWM

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Unlimited investment pool from which to choose options.

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Unlimited flexibility.

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Access to alternative investments.

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Access to a diverse set of sub-asset classes.

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We must continue to earn your business. You can transfer the account with no penalty and no restrictions.

Diversification seeks to reduce the volatility of a portfolio by investing in a variety of asset classes. Neither asset allocation nor diversification guarantee against market loss or greater or more consistent returns. Alternative investments provide investors with exposure to markets and investment strategies that cannot be accessed through traditional fixed income and equity markets (such as real estate, commodity or natural resources). Investing in these investments is speculative, not suitable for all clients, and intended for experienced and sophisticated investors who are willing to bear the high economic risks of the investments.

Get In Touch

46 S. Loudoun st.

Winchester, VA 22601
+1 540 205 8186
advisor@huntcountryinvestments.com

Please Note: We never share your personal information with outside parties.