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Portfolios
The defining feature of the
Elliott Cove Portfolios is that they are constructed using highly
efficient index funds (open end, closed end and exchange traded), in a
process we term Disciplined Asset Allocation.
This process accepts the efficient market
hypothesis - that financial markets are highly efficient and it is a
loser's game to try to 'beat' them - and we make this work for us, rather
than attempting to circumvent it. |
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Disciplined
Asset Allocation utilizes principles of diversification to lower risk,
while attempting to achieve superior risk-adjusted returns.
Diversification, in this process, means far more than simply a collection
of unrelated securities; it means carefully constructing a portfolio to
achieve the risk-return characteristics, over the long term, that meet the
needs of a wide range of investors. We then monitor and rebalance the
portfolios to keep them in line with their intent, hence the term
'disciplined'. Our goal is to achieve superior returns with lower
risk.
- The use of highly efficient index funds
to gain diversification and reduce costs
We utilize a blend of
many different index funds (open end, closed end, exchange traded funds)
to construct a portfolio for your particular appetite for risk. Our
universe of building blocks includes index funds of large cap growth
stocks, large cap value stocks, small cap growth and value stocks,
foreign stocks, real estate funds, and bond funds. This universe
consists of more than 125 highly efficient, low cost, index-based funds
to construct the portfolio that is right for you.
- Acceptance of market returns for
different asset classes (stocks, bonds, real estate, cash)
Over
the long term, we do not believe market returns can be beaten, after
adjusting for risk. This does not mean that all returns are the same. It
means that those willing to accept greater risk (volatility) will be
rewarded over the long run, while those who desire greater stability
must accept lower returns.
- Monitoring and rebalancing portfolios
to maintain the proper risk profile
After we determine the
correct index portfolio for you, we do not consider our job done. We
stay abreast on the latest research findings to make sure the portfolios
are structured as well as possible. We also rebalance the portfolios
based on performance to make sure we stay aligned with our initial
goals.
When your needs change, we are there to make the
adjustments needed to suit your new
requirements. | |
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