My Investment Philosophy
The most unique difference in how we manage investments is that — WE ACTUALLY MANAGE INVESTMENTS — rather than simply acquiring and outsourcing assets to a third-party portfolio model that is mass produced, over-diversified, and woefully outdated.
Believe it or not, this is still the approach used by most big-box firms and advisors and is based on a nearly 75 year-old idea called Modern Portfolio Theory, which suggests that beating the market is not statistically feasible or repeatable. Keep in mind that while still widely used, Modern Portfolio Theory was developed in a time where computers could not analyze market data. Is it possible things have changed since the mid-20th Century?
Surprisingly the majority of the professional industry has NOT. This means that your advisor likely KNOWS that your investments will underperform the general market (S&P 500 for example) and is completely comfortable with that.
Why? because you’ll always do “just ok enough” compared to the broader markets so that you don’t take your assets elsewhere — and even if you do, they are counting on gathering enough new client assets to offset outflows. Bottom line - performance is not their top priority.
I think that is a selfish and a spineless way to manage client assets. When it comes to investment management and advisory services, ask me about "Alpha" and how it absolutely is POSSIBLE and REPEATABLE to beat the benchmark while also reducing overall portfolio risk attempting to AVOID it with technology rather than DILUTE it with over-diversification.
I believe in a sound financial plan, but let's be honest, investment returns are the single biggest driver of your ability to retire well.
We've come a long way since Modern Portfolio Theory in 1952 so it's time to hold asset managers accountable for underperformance, especially when a DIY investor can beat 80% of the industry professionals.
Now that I’ve shared how my philosophy is different and what we DON’T do, I am pleased to openly share how the sausage is made and how I’m confident in OUTPERFORMING the S&P 500 over the long term. I don’t claim to have any crystal ball and certainly cannot guarantee specific investment outcomes; however, if you’ve read this far then surely you are smarter than the average investor and much smarter than the average financial advisor.
My Approach To Asset Management
I’ve stated it several times already — “simplicity is the ultimate sophistication.” Other financial professionals will overcomplicate your objectives to justify their existence and importance.
I believe there are only two client objectives: GROWTH or INCOME
It’s really that simple and not some convoluted stock-to-bond ratio that tries to do everything, yet always disappoints — neither excelling to the upside nor materially protecting the downside.
Growth is achieved by owning equities — shares of good companies, sectors, trends and funds. Growth potential is determined by each individual investor’s personal tolerance for volatility.
Income can be achieved from debt (bond coupons), equities (dividends), and through the use of more complex features called derivatives that can enhance overall yield while reducing investor risk.
We achieve growth and income through two primary approaches: Dual Defense Portfolio Strategies and Structured Products.
Personal finance is more personal than it is finance — investing is much more about psychology than it is math, science or technology.
My primary objectives are to grow assets and produce income to the highest extent possible — not to the point that I am comfortable — but to the point YOU are comfortable. That means my primary job is not actually managing investments, but managing risk and expectations.
ALL of our Dual Defense Portfolio Strategies are designed to Beat The Market — while nothing is guaranteed, the performance data clearly supports that intent over the long run. After understanding your individual risk profile and objective, I will assign your accounts to the most suitable portfolio profiles.
What Is Dual Defense?
Dual Defense is a proprietary suite of technology, tools, and algorithms developed by AlphaDroid and SumGrowth, LLC, and licensed to Canopy Financial Solutions for our own unique portfolio strategy development and management. The two layers of defense consist of StormGuard and TrendGuard, which seek to protect against downside risk and underperformance.
*Above graphics are property of SumGrowth Strategies, LLC, or its licensors and are protected by United States and international copyright and other intellectual property laws. Special thanks to AlphaDroid and SumGrowth, LLC for their invaluable subscription services and Dual Defense technology that Canopy Financial Solutions employs in our custom client portfolios and strategies. Live StormGuard indicator can be viewed HERE
What Are Structured Products & Investments?
Structured Investments are custom-built financial products that combine traditional securities like bonds and index funds with special contracts called derivatives to create a specific mix of risk and reward, tailored to individual client needs — growth, protection, and enhanced income. They’re designed to help you earn money in different market conditions—even when the market goes down. Structured investments have been utilized by high-net-worth investors with access to fancy wealth managers for decades. Canopy Financial Solutions is able to level the playing field and scale these risk management tools down to everyday investors — once again emphasizing our motto — Wealth Management Simplified
While Structured Investments are complex in construction, they are actually quite simple in implementation and execution. I encourage you to watch the two videos below to gain a better understanding. Most clients are very intrigued and amazed at the growth, income, and protection potential that Structured Investments can provide.