Our Approach
Active Management for Absolute Return
We do not believe in the passive set-it-and-forget-it model that leaves your wealth vulnerable to market crashes. Whether you are building your nest egg or preserving a legacy, our goal is absolute return: generating positive growth while prioritizing capital preservation.
The Case for Active Management
The Problem With Set-It-and-Forget-It
Passive indexing is marketed as the simple, low-cost solution for every investor. What the marketing leaves out is the cost of drawdowns. The 2008 financial crisis took the S&P 500 down 56% from its peak. An investor who needed to withdraw funds during that period did not have the luxury of waiting -- they locked in permanent losses at the worst possible time.
It took 5.5 years for the index to recover from its 2009 low. For retirees drawing income or business owners managing liquidity, that timeline is not theoretical -- it is devastating. A disciplined active approach does not guarantee avoiding every downturn, but it can reduce drawdown severity and shorten recovery time by managing risk before losses compound.
S&P 500 Peak-to-Trough, 2007-2009
Time to Recover from 2008 Low
S&P 500 COVID Drawdown, Feb-Mar 2020
Decisions made by discipline, not emotion.
Active Risk Management
We utilize technical analysis and strict sell disciplines to exit positions before small corrections become portfolio-damaging events. Markets do not move in straight lines, and neither should your investment strategy. Every position is monitored against predefined risk parameters so that decisions are made by discipline, not emotion.
Tactical Agility
Unlike traditional managers who must stay fully invested, we have the freedom to adjust positioning when conditions warrant. This flexibility allows us to protect capital during periods of elevated volatility and participate in opportunities as they emerge. Moving to cash is not a sign of fear -- it is a legitimate strategic position when risk exceeds reward.
Absolute Returns
Our focus is on generating positive, risk-adjusted returns in all market conditions while prioritizing capital preservation. We measure success by what we deliver to you, not by how we compare to a benchmark. Beating the S&P 500 means nothing if your portfolio still lost money.
See It In Action
Our Philosophy Is Not Just Words
Use the simulator below to see how the high-water mark and hurdle rate protect you in any market scenario.
High-Water Mark Simulator
Adjust the starting value and year-by-year returns to see how the high-water mark protects you from paying fees on recovered losses.
How the High-Water Mark and Hurdle Rate Protect You
We only charge a performance fee when your portfolio exceeds both the high-water mark AND the chosen hurdle rate (10%). The high-water mark is the highest portfolio value ever achieved. If your portfolio declines, we must first recover all losses before any performance fee applies. Even when the portfolio grows, you pay no fee unless the return exceeds the hurdle rate. You never pay fees on the same dollar of gains twice.
In this scenario, you paid no performance fee in 4 of 5 years because the portfolio did not exceed its high-water mark plus the 10% hurdle rate. In 1 year, the portfolio grew but did not clear the hurdle threshold -- no fee was charged despite positive returns. Your effective fee rate was 5.1% of total gains.
Chart showing portfolio value, high-water mark, and fees charged over 5 years with a 10% hurdle rate. Starting value: $1,000,000. Final value: $1,185,030. Total fees paid: $10,000.
Under a traditional 1.25% AUM fee, the same portfolio would have paid $68,997 in fees over 5 years -- compared to $10,000 under the Performance Partnership.
Hypothetical illustration. Starting value: $1,000,000. Performance fee: 20% on gains exceeding the 10% hurdle rate above the high-water mark.
Discipline Over Prediction
How We Manage Risk
Defined Exit Criteria
Every position has predetermined stop-loss levels established before the trade is placed. If the thesis breaks, we exit -- regardless of conviction or sentiment.
Position Sizing
No single position exceeds a defined percentage of portfolio value. This ensures that even a worst-case outcome on any individual holding cannot materially impair the portfolio.
Correlation Monitoring
We track correlation between holdings to avoid hidden concentration risk. Owning ten different stocks means nothing if they all move together in a downturn.
Volatility Response
When market volatility spikes beyond historical norms, we systematically reduce exposure. We do not try to predict the bottom -- we reduce risk and re-enter when conditions stabilize.
Two Approaches, One Philosophy
Tailored to Your Goals
Our commitment to active management applies across both fee models, but the implementation differs based on your goals and risk tolerance.
Wealth Management Clients
Consistent Growth Within Traditional Frameworks
For wealth management clients, we focus on consistent growth within traditional investment frameworks. We weight sectors thoughtfully, prioritize tax efficiency, and protect the assets you are counting on for retirement.
We believe most advisors are too conservative, but we also recognize that we cannot take excessive risks with your life savings. Our approach balances growth potential with prudent risk management.
Performance Partnership Clients
Global Macro Strategy for Absolute Returns
For performance partnership clients, we employ a global macro strategy with an unconstrained mandate. We take a top-down approach, analyzing macroeconomic trends, interest rates, inflation, and geopolitical developments to identify opportunities across asset classes and geographies.
We can position long or short, allowing us to pursue returns regardless of market direction. This approach comes with its own unique set of risks and is not a guarantee of positive performance.
The Performance Partnership includes a client-selected hurdle rate -- your portfolio must exceed either a 10% fixed annual return or the S&P 500 before any performance fee applies.
Our Boundaries
What We Will Not Do With Your Money
Day Trade or Speculate
We are not day traders. Every position is based on a thesis with defined risk parameters.
Chase Performance
We do not chase last year's winners or follow momentum blindly into crowded trades.
Use Excessive Leverage
We do not use leverage beyond what is appropriate for the strategy and risk profile.
Ignore Losses
We do not hold losing positions hoping they will recover. Our sell discipline is non-negotiable.
Ready to explore your options?
See how our philosophy translates into transparent, aligned fee structures.