Building Your Portfolio
Asset management is more than a collection of securities forming a portfolio. Building a portfolio and having it be successful, needs to withstand not only the fluctuations in the markets over time but also changes in your attitude and biases. It must reflect your vision for your future wants and needs.
Building your portfolio requires bridging the gap in your beliefs and financial theories that will ensure your success as a long-term investor. Connecting the math and solid academic theory must reach beyond the rhetoric offered up so often by financial firms. Tailored solutions and personalized services protecting your family should be a given not an offering.
There are some truths in certain financial theories that stand the test of time. How do you buy into that or even do you? Setting expectations around your wants and needs versus what is possible, as well as what is probable, requires bridging the gap between knowledge and inherent biases that are in all of us. Sometimes, all of these things are aligned and the decision easy. The conflict comes in the disconnect between what is possible and probable and things that influence your views along the way. This conflict between what you think may keep you from reaching the desired result. These areas could be risk, the economy, politics or something personal to you.
What is asset management?
Here at Chasefield we provide a framework to connect those differences and conflicts. We promise to explain the portfolio and our methodology in detail using simple to understand concepts. Returns and risk will be explained giving you realistic ranges of what to expect. Our plan is to set those ranges at the beginning of the process and communicate, especially when we believe they change. We will not always be right. This is inherent in working with future returns. Being wrong small, is part of the process, being wrong big, can cost you. Promising unreasonable returns is not what we do. We must agree that this makes sense. We run a straight-forward process changing how much you own of any given security based on whether it is cheap or expensive. We explain that as well!
Our goal is to bridge the gap between your narrative and our math to construct a portfolio that not only is productive but one that will allow you to find a safe port in a sometimes-rough sea.
It has been a tough year for stock and bond portfolios. I believe we are seeing the impacts that a hawkish Fed is having on both bond and stock markets alike. Throughout the year, we made a few tactical changes to portfolios…
Versa Fund is up almost 4% net after fees since launching in the beginning of October in 2021. Versa Fund has performed remarkably well despite the market falling substantially in 2022. To that end, we have created roughly 18% in alpha over our benchmark the SPY.
As many of you are aware, the first two quarters of the year have been poor for both equities and bonds alike. A large portion of portfolio positions in the equities space are down 20% or more, bond performance is negative, and real estate is down about 20%. Commodities and cash have been the only two…