We focus on the following principles when managing client portfolios:

Risk and Return Are Inherently Related

Over time, we believe that maximum levels of return can only be achieved by taking higher levels of risk, but sufficient returns may be achieved with a more acceptable level of risk.

Asset Allocation

Asset allocation is the primary driver of risk and return over long periods of time.


Diversification among different asset classes improves the risk/return tradeoff.

Relative Value of Asset Classes

At the margin, we adjust portfolios according to our opinion of the relationship between risk and return among the asset classes at any given time.

Portfolio Rebalancing

Rebalancing portfolios towards the strategic asset allocation and risk tolerance results in buying assets classes that have performed relatively poorly and selling asset classes that have performed relatively well. This strategy is both a risk management tool and may act as a mechanism for potential return enhancement.

Tax Efficiency

What matters is not how much you make, but how much you keep. We use several methods to improve the tax-efficiency of portfolios.

Behavioral Coaching

Average investor returns significantly lag that of a combination of comparably risky benchmarks. The culprit is often the natural human tendency to sell during market downturns and buy after rallies. We can improve long-term outcomes by convincing our clients to go against the crowd and remain with the strategy during challenging market environments.

©2021 Tortoise Investment Management, LLC