Investment Philosophy
The Centara Portfolio Management Investment Philosophy
We believe wealth is created over time, not overnight. Our focus is on long-term wealth creation and preservation rather than short-term trading and speculation. We concentrate on long-term performance by building well-balanced, risk-adjusted portfolios. Our goal is to manage portfolios that thrive in all market conditions.
Our core beliefs make up the foundation for our investment philosophy.
Long-Term Perspective
Traders are gamblers who make short-term wagers while Investors are strategists building wealth for the future. We are investors. Our focus is not on one-year returns; rather we make investment decisions based on 3-, 5- and 10-year holding periods. We look to outperform our benchmarks over meaningful time frames and varying market conditions. By maintaining a balance of equity securities, fixed income securities and cash, we work to minimize downside volatility in negative market conditions while potentially maximizing risk-adjusted returns.
Discipline and Patience
Investing takes discipline and patience. We do not allow ourselves to pursue last year’s best performers or be influenced by broad market volatility. We strictly adhere to our investment selection and asset allocation process, striving to take advantage of protracted market cycles, both up and down.
Stringent Investment Selection
As an independent wealth management firm, we have access to some of the most respected investment minds in the world today through the use of mutual funds and separately managed accounts. Our rigorous selection process leads us to choose some of the best money managers with proven track records over meaningful periods of time.
Asset Allocation
Ninety percent of a portfolio’s return is attributable to proper asset allocation. By using this type of strategy we can eliminate the two emotions that tend to impede performance — greed and fear. At Centara, we use a disciplined allocation approach to invest client assets. Through detailed research we have designed five different asset categories which provide the basis for our diversification strategy.