design the portfolio to match your Goals
Pennyfarthing follows a personalized process. We don't utilize one-size-fits-all portfolios, because everyone has their unique situation. You deserve a portfolio that matches your situation, no cookie-cutter portfolios here.
We construct portfolios in a new way, something we do that's different from many other financial advisers. Why be average? If the portfolio we built for you were exactly the same as what we'd deliver to your neighbor, who is in a different situation and has different goals and objectives, would we be doing our job? We utilize GMO's Nebo Wealth portfolio design software, which offers the following advantages:
Risk-sensitive – It's a failure if you don't have what you need when you need it. Investments go up, investments go down. While that much might be out of our control, such volatility can be managed. What to invest in and when to do so are firmly within our control. Taking on risk works best when the prospects are better for higher returns. Taking on risk only to fall short, that's something we consider less than optimal. We show our work in our conversations and, after a conversation regarding how risk might impact your ability to meet needs and goals, we then construct a portfolio to optimize prospects for your success, at whatever appetite for risk hits the sweet spot for you.
Performance-oriented – We don't hope asset classes will perform at the same return levels they have in the past. That's wishful thinking. We can't afford to gamble or hope that the future will be a simple continuation of the past. Instead, we analyze asset class valuations and forecast returns based on time-tested tendencies to mean-revert to normal valuations over the near and long-terms. Like children, markets grow into their boots. Does the boot size always step up at the same rate, or do their feet at times grow more slowly and sometimes more quickly? A little of both, but surely one can’t make a child’s feet grow more quickly by buying them a great big pair of shoes!
Dynamic adaptation – Don't let markets decide your risk level to some static benchmark. Likewise, doing nothing to re-optimize the mix of investments in your portfolio would forfeit your ability to take advantage of market opportunities. This means paying attention, adapting and designing your portfolio to best achieve your goals.
Without Dogma – What most other advisors don't tell you, in advance, is what future return assumptions you have to believe in order for their portfolios to work for you. Instead, they embed a set of return beliefs into their investment processes, opaque and reflecting general consensus. What this really amounts to is projecting past returns into identical future rates. Will the future be an exact replica of the past? History proves otherwise. In fact, what has gone up in the recent past, and has had its valuation stretched, might well have subpar returns in the future, and vice versa. We think critically about what future returns will be over the long-run and discuss how markets can turn downward despite the financial hype.
Alignment – We want to invest in the direction you want to go. A cookie-cutter approach might be easier for us to follow, but would it be best for you? Let's manage to meet your needs and goals, in conversation with you.
We construct portfolios in a new way, something we do that's different from many other financial advisers. Why be average? If the portfolio we built for you were exactly the same as what we'd deliver to your neighbor, who is in a different situation and has different goals and objectives, would we be doing our job? We utilize GMO's Nebo Wealth portfolio design software, which offers the following advantages:
Risk-sensitive – It's a failure if you don't have what you need when you need it. Investments go up, investments go down. While that much might be out of our control, such volatility can be managed. What to invest in and when to do so are firmly within our control. Taking on risk works best when the prospects are better for higher returns. Taking on risk only to fall short, that's something we consider less than optimal. We show our work in our conversations and, after a conversation regarding how risk might impact your ability to meet needs and goals, we then construct a portfolio to optimize prospects for your success, at whatever appetite for risk hits the sweet spot for you.
Performance-oriented – We don't hope asset classes will perform at the same return levels they have in the past. That's wishful thinking. We can't afford to gamble or hope that the future will be a simple continuation of the past. Instead, we analyze asset class valuations and forecast returns based on time-tested tendencies to mean-revert to normal valuations over the near and long-terms. Like children, markets grow into their boots. Does the boot size always step up at the same rate, or do their feet at times grow more slowly and sometimes more quickly? A little of both, but surely one can’t make a child’s feet grow more quickly by buying them a great big pair of shoes!
Dynamic adaptation – Don't let markets decide your risk level to some static benchmark. Likewise, doing nothing to re-optimize the mix of investments in your portfolio would forfeit your ability to take advantage of market opportunities. This means paying attention, adapting and designing your portfolio to best achieve your goals.
Without Dogma – What most other advisors don't tell you, in advance, is what future return assumptions you have to believe in order for their portfolios to work for you. Instead, they embed a set of return beliefs into their investment processes, opaque and reflecting general consensus. What this really amounts to is projecting past returns into identical future rates. Will the future be an exact replica of the past? History proves otherwise. In fact, what has gone up in the recent past, and has had its valuation stretched, might well have subpar returns in the future, and vice versa. We think critically about what future returns will be over the long-run and discuss how markets can turn downward despite the financial hype.
Alignment – We want to invest in the direction you want to go. A cookie-cutter approach might be easier for us to follow, but would it be best for you? Let's manage to meet your needs and goals, in conversation with you.
