Investment Strategy

Investment strategy or "portfolio construction" is the tangible manifestation of an investment philosophy. The investment decision-making process requires that an investor choose which asset classes and investment vehicles to include when forming a portfolio strategy.

Most long-term investors develop an investment strategy to address three common goals:

  1. manage investment risk and preserve capital
  2. provide growth of capital or corpus
  3. establish a future income stream from the portfolio

Many of the largest academic institutions in the United States use evidence-based investment concepts founded on Nobel Prize winning ideas to develop their investment policy, manage investment risk and implement their investment strategies. College investment committees tend to be thoughtful and deliberate and they aspire to fulfill their fiduciary obligations under the law. They diversify by asset class to manage investment risk and then implement their investment strategies with low-cost institutional mutual funds. This is referred to as the Endowment Model because many large colleges use this method to manage their endowment funds.

Allodium believes that all investors should consider using the academically based science of investing to develop thoughtful and prudent investment strategies like a college endowment fund committee. We have adopted many of these smart, proven, evidence-based strategies into our investment strategy. We want to model the prudent investment practices of large institutional investors. We believe that our investment strategy incorporates the best practices of fiduciary investment management.

Investment Discipline >>

  • CFP
  • AIF
  • Fee Only