Our Investment Approach

Disciplined Investment Process

TC Wealth Partners portfolios are carefully designed by our investment committee to meet client needs with regard to return on investment as well as risk tolerance. We utilize both strategic and tactical asset allocation in managing portfolios. We actively monitor asset valuations to manage risk, with the belief that all asset classes revert from extremes back to mean, or normal conditions.

 

We abide by three basic tenets:

1. We follow a disciplined investment process

We don't chase after returns or make radical changes to your portfolio. Rather, we are disciplined and patient. We determine your risk tolerance, agree on a particular asset allocation, and stick to that. As you enter a new stage of life, desiring to either increase or decrease your risk tolerance, we will have a thoughtful conversation and modify your investment strategy accordingly.

2. We believe in prudent asset allocation

The primary determinant of long-term investment results is the distribution of an investment portfolio among stocks, bonds, and cash. This is also an effective way to mitigate risk over complete market cycles. When we build portfolios, we are value-oriented – meaning we take a look at the different buckets or asset classes that we can invest in (stocks, bonds, alternatives, or real estate) and assess how things are priced. Then we decide what the allocation should be based upon your risk tolerance. We believe that valuation and profit margins are subject to mean reversion over the long-term. Therefore, we look to buy undervalued assets and sell overvalued ones.

3. We engage in evidence-based Investing

Consumers have a tough time negotiating the financial product landscape. Advertisements boast superior 5-year and 10-year track records, while the small print references the mandated “past returns do not guarantee future results” caveat. Our job is to minimize the noise and seek out the facts.

 

Evidence shows there are a number of factors that can add value for patient investors:

  • Lower cost investment funds
  • Low turnover portfolios
  • High active share (the degree to which an active investment manager deviates from the benchmark index)
  • High tax efficiency
  • Cheaper asset prices
  • A tilt towards small-capitalization and value stocks
  • Regular rebalancing
  • Discipline

Our goal is to build portfolios that incorporate these factors.