Investment Solutions
Investing is entirely about acquiring future cash flows at an attractive price. There is no asset that is an attractive investment at any price and there is almost no asset that is not an attractive investment at some price. Price is critical. Buying an asset that one knows to be overpriced, in the hope that it will become more over priced, is not investing - it's speculation. While speculators can make money, the outcome is far less predictable than true investing - and predictability matters.
Every day, we are presented with an array of future cash streams (investments) offered at various prices. A Chief Investment Officer's most important job is to allocate capital among those opportunities. Some programs rely on a static allocation with rebalancing. Some rely on tactical allocation, usually based on some system of "econometric" inputs like the commodity prices, interest rates and corporate earnings estimates. There are even some who still try to time the market, jumping in and out based on little more than intuition.
We are neither static nor tactical. Our price sensitive capital allocation process is active but strategic relative to time horizon.
Underestimating the significance of capital allocation is one of the two reasons that most investors fail. The other is that they fall victim to predictable behavior traps. Hirtle Callaghan has developed a proprietary processes of:
- portfolio design that emphasizes capital allocation
- disciplined risk management that avoids the destructive impact of behavior traps.
Our portfolios are risk managed, globally diversified, multi asset class, multi strategy and custom designed for each client.