Our Approach to Investment Management
Investment Philosophy
At Leahy & Clair, we believe in four guiding principles when advising clients and investing in today’s capital markets:
- The advisor’s job is not to predict, but rather to prepare and protect.
- There is a difference between short-term speculation and long-term investing
- As long-term investors with broadly diversified portfolios, we are essentially investing in the success of capitalism
- Investment portfolios must be aligned with the client’s risk tolerance and long-term financial goals
Investment Management Principles
To construct personalized investment strategies and manage efficient portfolios for our clients, Leahy & Clair believes understanding the following time-tested economic principles are critical:
 |
Markets work. Capital markets do a good job of fairly pricing all available information and investor expectations about publicly traded securities. |
 |
Diversification is critical. Comprehensive, global asset allocation can neutralize the risks to individual securities. |
 |
Risk and return are related. The compensation for taking on increased levels of risk is the potential to earn greater returns. |
 |
Portfolio structure explains performance. The asset classes that comprise a portfolio and the risk levels of those asset classes are responsible for most of the variability in portfolio returns. |
 |
Minimize internal investment costs. The tax implication of placing certain types of investments in certain types of accounts must be considered as well as the management cost internal to certain investments such as mutual funds and exchange-traded funds. |
All Content © 2010
