Our Process

Providing a clearer vision with Intuitive Regression Analysis™

A few years ago, we hired an artist to paint a room in our home with a “faux painting,” which involves a process of layering paint for a specific visual effect. The desired visual “masterpiece” comes after applying several simple yet specific applications of paint and a customized glazing compound.

As I watched the artist complete the first layer, I thought, “This doesn’t look like what I want.” But with each layer of paint, the visual image took shape. Watching the artist at work, I couldn’t help but notice that the process is both an art and a science. With twice the time of a standard paint job, the vision became a reality, and the result was exactly what we wanted. Our patience was rewarded!

Intuitive Regression Analysis™ is a complex name that parallels the evolution of an artist’s painting and is our disciplined approach to investment research.

With Intuitive Regression Analysis™, we begin with a vision of the ideal investment, outlining desirable risk and return parameters. That is to say, for each unit of volatility (risk), how can we optimize the return for what we place at risk (our investment)? With the vision defined, our process continues with five steps:

Step 1: We carefully evaluate current global conditions (inflation, interest rates, central bank policy, etc.).

Step 2: We research a library of investments that historically perform well in similar global conditions.

Step 3: We search for the best managers of those investments. The details are too lengthy to list here; however, it should be said that this step is anextensive screening process that narrows the field to less than one percent of all possible candidates. Only a few finalists “survive” at the completion of this step.

Step 4: We evaluate multiple combinations of the finalists for tailoring a portfolio to each client’s goals, risk tolerance, and time horizon. Each portfolio solution is presented with commonly used statistical data in a compliance-approved format.

Step 5: We verify results. Do they meet the vision that was originally defined?

What are the benefits of this process?

  • It can help us to adapt to changes in the economic picture.
  • It can conform to the risk tolerance of any client.
  • It gives us the tools to translate complex data into simpler, transparent terms.

What does it mean to you?

  • The complex becomes simpler and details become clearer. . . Our clients get a better understanding of the strategy and can invest with confidence.

Asset allocation and diversification programs do not assure a profit or protect against loss in declining markets. No program can guarantee that any objective or goal will be achieved.