The Power of a Well Allocated Alternative Portfolio
How should alternative investments be used in my portfolio?
In addition to researching and selecting the best risk-adjusted alternative managers, it’s equally important to determine how each manager is combined with others so that low correlation to both stock markets and one another is optimized. We build a core around our private long/short managers and surround that core with other non-correlated protective alternative investments, niche real estate, and even some conventional stocks to the degree we view appropriate. By equipping a portfolio with protective alternative managers that complement each other’s return patterns and risk, we minimize both market volatility and negative performing months.
Money grows fastest when portfolios experience as few setbacks as possible. We found this abundantly clear in the last recession when the S&P 500 lost 37% during 2008 alone. During the same year, eight of our ten alternative managers produced positive returns with the remaining two running only slightly negative*.
A well-researched, well-diversified grouping of alternative managers remains central to growing portfolios as steadily as possible. Slow and steady does win the race.
If you’re looking for a safer, more reliable, more productive way to invest along with state-of-the-art tools for impact investing, insurance planning, estate planning and charitable giving, let’s have a talk.
*Past performance is not indicative of future results. Investors should be aware that “Alternative Investments” or hedge funds often engage in leverage, short-selling, arbitrage, hedging, derivatives, and other speculative investment practices that may increase investment loss. This message is not an offer to sell any interests of such funds. The disclosure document of such funds contains a complete description of the principal risk factors and fund expenses. Prior to investment, investors should carefully read the fund’s disclosure document to determine whether such investment is appropriate for them in light of their financial condition. These investments are proprietary and are available for prospective investors only through MCM Wealth LLC. Please see our Disclosure document.
At MCM Wealth, we specialize in planning and creating portfolios designed to perform regardless of the direction of the economy. We do this primarily via well researched alternative investments that are specifically chosen to be both defensive and productive in bull, bear and recessionary markets. We provide clients in the San Francisco Bay area with whole life financial planning services, private wealth management solutions, alternative portfolio management assistance, asset management, estate planning services, charitable giving solutions, impact investing options, and insurance planning services to business owners, ceo’s, dentists, doctors, entrepreneurs, executives, families, individuals, and impact investors in the San Francisco Bay area. We also serve clients in the Corte Madera, Fairfax, Greenbrae, Larkspur, Point Reyes, San Anselmo, Sausalito, and Stinson areas.
We were founded in 1997 and have offices in Novato California, a suburb San Francisco. We are dedicated to understanding our clients and then providing the highest level of research-based financial management, objectivity, performance, planning, service and communication. We select and offer best-of-breed financial managers in those wealth investment niches that we believe will best serve our clients. We are a fee-only practice, which means we act as a fiduciary for our clients. Our financial advice, financial services and financial solutions are designed to withstand the test of time. We look forward to learning more about you and how we may be of help. Below is a full list of services we offer: