Asset Allocation
Every portfolio we build uses three types of building blocks: defensive assets that protect capital, traditional growth assets that drive long-term returns, and non-traditional growth assets that provide diversification and income.
Three Types of Building Blocks
| Building Block | Purpose | Examples | Role in Portfolio |
|---|---|---|---|
| Defensive | Preserve capital and reduce volatility | Treasury bonds, cash equivalents, structured notes | Anchor the portfolio during market downturns |
| Traditional Growth | Drive long-term capital appreciation | U.S. equities, international stocks, REITs | Generate the growth needed to meet long-term goals |
| Non-Traditional Growth | Diversify returns and generate income | Private equity, real estate, alternative credit | Reduce correlation and add return streams |
Building Blocks Contain Strategies
Each Building Block holds specific strategies. The mix and weight of each is set inside the broader plan, not in isolation.
Preserve capital, fund near-term cash flow, anchor the portfolio during drawdowns.
- ▸Low Risk Short-Term Cash Flow
- ▸Moderate Risk Long-Term Cash Flow
Drive long-term capital appreciation through listed equities, both systematic and discretionary.
- ▸Moderate Growth
- ▸Total Growth
- ▸Large Cap Quant
- ▸Small Cap Quant
- ▸American Value
- ▸Protected Equity Growth
- ▸Hand-Picked Stocks
Diversify return streams and reduce correlation through private markets and alternatives.
- ▸Non-Listed Non-Traditional
How We Construct Portfolios
We start with your goals, time horizon, and risk tolerance. Then we determine the right mix of building blocks to create a portfolio that balances growth potential with downside protection. Each portfolio is individually tailored, there is no one-size-fits-all model.
Which Building Blocks Help You Most?
The optimal allocation depends on what your investment objectives are and where you are in your financial life. Schedule a portfolio review to see how your current allocation compares to where it should be.
Who This Is For
- Investors who want a coordinated portfolio built from defined building blocks, not a scattered collection of holdings
- Clients whose allocation should reflect their goals, time horizon, and risk tolerance
- Those who want defensive, traditional-growth, and non-traditional assets working together
- Investors who want their allocation reviewed against where it should be, not left on autopilot
- Investors chasing a single hot stock or fund rather than a whole-portfolio approach
- Anyone wanting an off-the-shelf model with no tailoring to their situation
- Those unwilling to hold any defensive allocation that trades some return for stability
Risks, Costs, and What to Weigh
- Allocation is a tradeoff: defensive assets reduce volatility but temper returns, while growth assets raise both potential return and risk.
- There is no one-size-fits-all model; the right mix depends on your goals, time horizon, and tolerance for volatility.
- Non-traditional building blocks add diversification but are typically less liquid and carry their own risks.
- An allocation is not set-and-forget; it should be reviewed and rebalanced as markets and your life change.