Lance Vennard • Mesa, AZ
Sterling Investment Advisor, Inc.
We think that what we’re doing within our RIA is very distinctive from an investment portfolio perspective—”managing the managers,” if you will.
To truly implement a modern version of active management, our objective is to diversify among different types of managers and the different strategies and sectors they are best at managing. This allows our sophisticated roster of managers to do what they do best.
We took the old asset-allocation strategies, which I think are in many ways still in the Stone Age, and replaced those mutual funds and ETFs with active tactical managers.
So, even if one of those sectors or strategies doesn’t do what we expected it to do, the manager has the discretionary ability to tactically move to cash or go short or hedge or do whatever he or she feels is appropriate, instead of sitting there waiting to get hit by a freight train.
We are essentially building a portfolio that might have an active manager that works well in emerging markets, or precious metals, or commodities, or currencies, or any other flavor of equity or bond sector. We’re diversifying and rebalancing the tactical managers, with the objective of giving our clients the best opportunity to be with the right managers at the right times—in what may be turbulent markets to come.
Disclosure: Advisory services offered through Sterling Investment Advisor, Inc., a registered investment advisor.
Photography by christopherbarr.com
