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At Trifecta Capital Advisors, one of the primary services for which we are known is providing tailored portfolio creation and ongoing money management that supports the client’s overall financial well-being in the long run.
These are the critical elements that comprise our Power of Three portfolio construction and money management approach. When you become a client, we will discuss these elements thoroughly with you and determine the best course forward.
We start by determining the appropriate asset allocation for you based on financial and non-financial goals, family, cash flow, liquidity, expenses, risk tolerance, and time horizon. We weigh these factors to arrive at an allocation that appropriately rewards you for the amount of risk that you are comfortable taking.
Each client has a documented Investment Policy Statement with target allocations related to stocks, bonds, and cash. Ranges (above and below target) will be built-in around all asset classes in order to:
Trifecta uses proprietary capital market assumptions for the potential risk and return of each major asset class (stocks/bonds/cash) as well as correlation data to provide a diversified investment portfolio across different sub-asset classes. This discipline is the basis for our long-term strategic recommendations.
Based on current global conditions and expectations for the near term, we look at valuations, momentum, technical analysis, and economic data such as interest rates, inflation, employment data, and other relevant factors to make tactical adjustments to our long-term recommendations.
Within stock and bond asset classes, we then allocate funds to sub-asset classes based on similar criteria related to valuation (absolute, relative, and historical), macro trends, and microdata. We will focus the major asset classes on domestic large capitalization stocks and domestic investment-grade bonds. In addition, for diversification purposes, we may use other attractive asset classes such as domestic small- or medium-sized companies, international companies, commodities, or REITs (real estate investment trusts).
Similar diversification will be used within bonds by potentially incorporating high-yield bonds or preferred stocks.
For long-term capital appreciation, our investment strategy focuses on investing in high-quality corporations with management teams dedicated to creating shareholder value. We prioritize companies that offer long-term growth and attractive valuation. Our approach involves ongoing fundamental, bottom-up research utilizing both internal and external sources.
Companies in which we invest will most likely have the following characteristics:
We tailor our bond selections to your unique tax situation, considering the bond’s maturity and quality. Our process involves analyzing each individual purchaser’s tax circumstances to determine the suitability of tax-exempt or taxable bonds. Maturity and duration decisions will focus on current and future yield curve analysis, domestic growth forecasts, and inflation expectations. To mitigate risk, we diversify across different states and/or corporations.
We employ mutual funds or exchange-traded funds (ETFs) where appropriate, utilizing our proprietary analytical research and tools to identify best-in-class solutions. Depending on the situation or asset class, we may opt for active or passive mutual funds, prioritizing active funds that consistently demonstrate alpha.