My Proven Pyramid Approach to Structuring Your Assets

 
This pyramid model represents the general foundation upon which I base my portfolios to preserve the assets you have accumulated and take advantage of growth opportunities. Not every investor’s pyramid would resemble this one; it provides a framework, not a formula. Each portfolio is highly customized to suit the investor’s individual needs, and every investment is subject to rigorous quantitative and qualitative analysis in context of his or her own circumstances.

Bottom Tier — Stable portfolios are based on a solid foundation of conservative investments that provide predictable, long-term capital preservation with some steady growth. Correctly structured, this component requires relatively little adjustment over time.

Middle Tier — The “engine” of most portfolios is composed of properly diversified stocks in proven companies that typically provide dividends, as well as investment funds or other managed equity programs such as Blackmont’s exceptional Integrated Managed Account (IMA). A distinguishing strength of my practice is that I will guide you through the “clutter” of managed money alternatives and orchestrate the best combination of fund managers to smooth out returns and reduce volatility, yielding optimal performance. More growth-oriented than the bottom tier of the portfolio pyramid, this middle component involves increased volatility and can be expected to require a somewhat heightened level of proactive management, but the fundamental principles of “buy and hold” still apply.

Top Tier — More aggressive instruments in timely sectors can provide short-term growth momentum regardless of overall market direction. In stronger markets, riskier “high beta” stocks in favoured growth sectors like energy, precious metals and other commodities take direct advantage of the market and economic trends we are seeing today. In declining markets, hedging vehicles — for example, “bear market” Exchange-Traded Funds (ETFs) or protective derivatives — can steady a portfolio’s progress. This tier is impacted more by market conditions and therefore requires a higher degree of maintenance. Yet, when implemented in an integrated fashion with exposure control, it can significantly enhance portfolio performance.