Old idea, different approach
Asset allocation is the foundation of any investor’s long-term strategy. However, in our opinion, there are limits to traditional asset allocation approaches. Investors and investment advisors have seen that the “easy money” days of the 1980s and 1990s did not last forever. They also started to see the gaps in traditional asset allocation approaches. We aim to resolve that.
Emerald Asset Advisors’ mission since inception has been to provide a practical alternative to the traditional asset allocation solutions that Wall Street typically offers to investors. Specifically, our goal is to construct portfolios that produce the key benefits often found in hedge fund investing.
- An absolute return objective
- Low correlation to the global stock and bond markets
- Low volatility relative to the stock market
- Competitive upside capture with limited downside capture
- Flexible investment styles
…but without the issues inherent in the hedge fund Limited Partnership (LP) structure:
- Lock-ups and limited liquidity
- Limited regulation and lack of transparency
- Potential for excess leverage
- High investment minimums and high management fees
- Tax inefficiency
Our alternative approach centers around using carefully selected, specialized mutual funds and ETFs, which are priced and traded in the public securities markets each day. By doing so, we strive to combine the best of both worlds – hedged strategies in a liquid, transparent and cost effective format.
In addition, to complement these strategies, we may hire third–party money managers who we consider specialists to manage your accounts. Some may manage a portfolio of stocks or bonds, while others may execute strategies using convertible securities or dividend paying stocks. We want to have a full arsenal at our disposal so we can construct a well diversified portfolio.