Our Investment Approach

Our investment management goal is simple. We seek to capture most of the stock market's good times and miss most of its bad times. Limiting significant declines can allow for more potential long-term gains that are in fact, realized gains - not just the account recovering to previous account levels. No one investment strategy is perfect, and we recommend implementing multiple investment strategies to help achieve the potential for long term return goals.

No one can predict the direction of the market with certainty.  On the other hand, there is data and research that can suggest when conditions may be favorable for making money-and when they're not. Think of this as determining times to go on the offensive or defensive. One way to reduce risk in your investment strategy is to consider moving from offense to defense. This can be achieved with a Tactical portfolio Strategy. This is an active and adaptive approach to managing investments which has the purpose to invest and protect. Generally, rebalancing a portfolio occurs on a quarterly, semi-annual, or annual basis. Our suite of Tactical portfolio strategies will monitor your investments daily and adapt the portfolio exposure consistent with our process risk indicators, and trend verification. When our research indicates conditions may be favorable for potentially making money (offense), we will Invest for maximum growth potential. When our research indicates conditions may not be favorable for making money (defense), we will Invest to preserve principal and protect previous gains.

Many investors have used market fluctuations to their benefit when they are in the asset accumulation stage by investing new capital at lower prices. You may have heard stories of people investing when fear was at its highest during the Tech bubble of 2001-2003, the financial crisis of 2008-2009, or even more recently during the Pandemic of 2020. At these unpredictable times, the outcome proved to be rewarding.

However, once an investor begins to take distributions from an investment portfolio, let’s say for retirement income, the implications of regularly withdrawing money from an investment portfolio that is declining can have serious irreversible consequences. This may result in an investor needing to choose between potentially running out of money during retirement or needing to discontinue or scale back on withdrawals and return to the workforce until the portfolio recovers from its declines. None of these choices are an attractive option and therefore utilizing investment strategies that are designed with the goal of minimizing losses when market conditions become unfavorable are an important part of a comprehensive investment strategy. By implementing multiple investment strategies for your retirement assets and complementing this with our 3-layered Bucket Approach (found on Our Process Page), you will help insulate your money from significant market declines and the added stress of withdrawals.

We believe that no one investment or portfolio is the perfect answer to providing successful consistent returns. Our approach is to incorporate several portfolio strategies for our clients to deliver diversification on the strategy level. Each portfolio strategy aims to complement one another through various market cycles.

Our management approach is intended to recognize and respond to market conditions favorable or unfavorable for making money. We then overweight, underweight, or balance to target those areas of strength based on the underlying investment strategy. Each one of our portfolio strategies follows a process and coincides with an underlying investment policy and methodology. 

PLEASE NOTE: Portfolio strategies are utilized when clients give full discretion to the advisors at Reddington Sourour Advisory Group to actively manage their accounts.