“The investment process starts with RISK and ends with RISK. Investment performance is what happens in the middle through diligence research and discipline.”
-Neal Falkenberry, Chief Investment Officer
Autumn Wind’s Process
You Work Directly With A Portfolio Manager
From start to finish, every Autumn Wind client works directly with a dedicated portfolio manager, not a relationship manager. Your portfolio manager is supported by a team that assists with transferring assets, moving funds, reporting , and estate and tax planning but your point of contact is the person closest to the financials markets. This enables us to develop a more complete understanding of your investment objectives and to better communicate our investment outlook, strategy, and specific investment decisions.
Define Detailed Investment Objectives
Our first objective is to define your objectives in as quantitative a manner as possible. Often this involves developing cash flow models to assess the growth rate required by your portfolio in light of expected spending and gifting needs. At this point, we are taking an accounting view of your portfolio’s future, not a tactical market view. The end result is a clear understanding of the asset allocation required to satisfy your income, growth, liquidity, spending, gifting, tax, and estate related needs.
Diversification Across Asset Classes
Once we have developed an understanding of your goals we build a tailored portfolio of individual securities to achieve those objectives. Our portfolios are global and include multiple-asset classes. We believe very strongly in diversification of asset classes, styles, sectors, and in the security selection criteria. At times we may allocate to specialty managers through the Autumn Wind Global Multi-Strategies Fund to gain exposure to managers who focus on areas outside our expertise. These could include private equity, distressed debt, and commercial real estate mortgages, for example.
Tactical Risk Management
We are wealth managers and as such, long-term investors. Yet, we recognize that markets go through periods where we believe risks are extraordinarily high for any given level of return. We believe valuation, liquidity, and monetary policy describe forms of risk and must be managed actively in a portfolio. In periods we perceive as high risk we may employ a tactical risk management overlay to each client’s portfolio to hedge risk and protect capital.
Communication. Review Results Quarterly
The final step in our recurring process is to meet with clients on a quarterly basis, quantify investment results, check against the established objectives, and update our current investment outlook. This is a participatory process and one that grows stronger over time. The average length of an Autumn Wind client relationship is currently 14.2 years and reflect sour commitment to concise communications to clients.