Strategies
Wealth Simplified. Life Enjoyed. tm
The World is Unpredictable · Be Prepared for Potential Upside Surprises
Seeking Superior Returns
Get the Right Mix - 3 Easy Steps to Achieve a High Probability of a Successful Retirement
Our mission is to empower people to be invested within the bounds of their risk tolerance so they can get invested and stay invested.Why is that important? The data shows that most people are invested outside of that tolerance. When the market inevitably pulls back, they sell out, lock in significant losses, and wait until the market "feels safe" to buy back in at the high. We believe this poses the greatest threat to individual wealth, and we're empowering our clients to end that cycle.
CLICK TO FIND OUT
In 25 years of advising, we have found Riskalyze to be the single best tool to help identify your acceptable levels of risk and reward (see video, right). Using their quick but effective questionnaire, we can simplify your desires for return and risk into one number: your risk number.
There are three steps to building your investment strategy:
Step One: Determine Your Risk Number
The math behind the assessment helps me ensure that your portfolio aligns with YOUR investment goals and expectations. Together we can take the guesswork out of your financial future.
Step Two: Align Your Portfolio
After pinpointing your Risk Number, we’ll craft a portfolio
that aligns with your personal preferences and priorities,
allowing you to feel comfortable with your expected outcomes. This empowers us to make fast and clear decisions on our investments.
After pinpointing your Risk Number, we will craft a portfolio that that will include how much money you should allocate to the Focused 50 portfolio, our Infinite Alpha Fund and our Opportunistic investments, keeping you on the path to prosperity.
How We Will Keep You on the Path to Prosperity
Step Three: Meeting Your Retirement Goals
We will review your progress toward your financial goals by building a Retirement Map. Your Retirement Map is a powerful tool to help us quickly determine the probability of success for your retirement strategy.
With Retirement Maps, we can objectively express whether your retirement goals, risk tolerance and/or existing portfolio have a high probability of success.
Retirement Maps provides an opportunity for us to address important questions such as
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Am I saving enough given my portfolio allocation?
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Is retirement at age 55 possible without additional savings?
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What would buying a second home do to my retirement goals?
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Can I be invested this conservative and still make a retirement by age 60?
When we are finished, you’ll fully understand what we can do to increase your probability of success.
Retirement Map
The World is Unpredictable · Be Prepared for Potential Downside Surprises
Infinite Alpha Opportunistic Fund
Investment Opportunity
The primary objective of the Partnership is to capitalize on opportunities that the recent decline in asset values and continuing uncertainty in the economy are presenting for long-term investors. With the recent rallies, the public stock market and bond market seem to be at least fairly priced. In sharp contrast, investors are still demanding a risk premium on illiquid investments and these provide the potential for outsized returns with lower risk. Simply put, our objective is to realize capital appreciation upon the ultimate sale of our assets.
Game Plan
The difficulty in capitalizing on these opportunities is that the investor must be nimble and ready to act when the appropriate investments arise, but also must perform a high level of research and due-diligence before jumping in head first. The Opportunistic Fund seeks out favorable long-term, illiquid investments through research, due diligence and professional relationships and, subsequently, making appropriate allocations in a timely manner.
”We are patient investors. In the Opportunistic Fund, we look for assymetries, seeking investments where the upside potential exceeds the downside risk. These are hard to find, but we are not afraid to move quickly when they do present themselves. While we wait, we help clients choose the right combination of our hedged equity fund, which is conservative, and our Focused 50, which seeks to beat the market over a full investment cycle."
The Assets
The recent recession and current market conditions have provided for a “re-pricing” of major asset classes producing a favorable risk-reward profile in a multitude of opportunities.
In particular, those investments with higher illiquidity and/or a longer time-frame such as distressed debt, distressed real estate, private equity opportunities, farmland, timberland, banks, and tax liens have an enticing potential capable of being captured by prudent, yet timely, investors.
The Opportunistic Fund provides a unique resolution to the main obstacles investors face when presented with illiquid, long-term investments. One, it is our experience that investors can tie up too much capital in one or two illiquid investments-often to their detriment-thereby increasing unnecessary risk in their portfolio. By pooling assets and investing in a broader range and greater number of opportunities, the Partnership seeks to diversify away some of the risk inherent to these investments. Second, most investments require minimums ranging from $100,000 to $1,000,000+ making it difficult for an individual to get access to a broad range without allocating more than is prudent and, perhaps, more than they have available. Through a single investment in the Opportunistic Fund, investors gain valuable exposure to opportunities and asset classes that would not normally be available to them.
Infinite Alpha Fund
Infinite Alpha Fund, our flagship product, is designed to deliver an endowment like investment solution with our unique twist, the use of options to protect clients’ financial capital, but more importantly, their emotional capital, so they can stay invested during volatile markets. Simply put, the strategy is designed to capture a meaningful portion of the markets upside, while limiting losses in bear markets. Mr. Herr is the portfolio manager, utilizing his experience of 20 years of option trading at the Chicago Board of Trade, to navigate the all too often rough seas the markets have experienced.
Focused 50
Overview
The Focused 50 Portfolio is a focused group of 50 stocks designed to consistently outperform the S&P 500 index. The Focused 50 is long-only, with targeted annual turnover below 40%. It is sector-neutral relative to the S&P 500, and is rebalanced every quarter.
Selection
The stocks selected for the Focused 50 must meet a set of decision rules related to each company's intrinsic value and market price. More importantly, each company meeting the first hurdle is then reviewed by the analyst team to address the qualitative issues that the default model may not identify. Each company has a custom model updated by analysts every quarter, who also provide prompt comments about the latest developments of the companies in the model. Analysts also strive to achieve a desired level of diversification for the 50 names, to avoid any unintended exposure to a given economic factor.
Bill Herr - Infinite Alpha Capital Management
