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True Portfolio Diversification

 

While the traditional financial community generally restricts itself to investment recommendations comprised of stocks and bonds, we believe an investor’s portfolio can be far better diversified if it is balanced between the five primary asset classes consisting of stocks, bonds, real estate, natural resource based investments and cash. We do not accept the illusion that adequate diversification can be achieved within the confines of one or two asset classes. Narrowly focused diversification within an asset class may provide a modicum of diversity but it is unlikely to protect a portfolio from a broad decline in that particular asset class. For example, a portfolio spanning many diverse equity securities may spread risk across hundreds of stocks, but it also can present undue exposure to a broad downturn in the stock market. We provide investment opportunities that can reduce portfolio exposure to the shortcomings of the current, widely accepted, narrowly focused investment paradigms.

Our Approach to Investing

 

Our approach to investing begins with a top-down assessment of macroeconomic, geopolitical, and long-cycle analysis. There will be periods of economic boom and recession, years when asset classes can move in similar or opposite directions. There can be decade long periods of high volatility and comparable times of quiet and stagnant market performance.

Articles about secular trend investing:

Secular Trends of the Next 16-18 Years

Read Article

“To know and not to act, is not to know.”

Read Article

Market Letter

and Commentary

Read Article

Investment Objectives

 

Our top-down analysis is intended to result in the identification of investment opportunities that have the potential to achieve most, if not all, of the following objectives:

Income Stream

We primarily focus on products that are intended to provide investors with a constant and reliable current yield.

Capital Appreciation

An investor’s desire for a reliable current yield should not come at the sacrifice of participating in the potential for long term capital appreciation.

Low Volatility

We search for investment opportunities that have a historical track record of low volatility or a low (or negative) Beta correlation to the listed financial markets.

Tax Efficiencies

Many of the hard asset investment programs discussed on this web-site may provide tax efficiencies and/or earned income credits by passing through certain tax attributes such as depreciation, depletion, and in the case of natural gas and oil drilling programs, intangible drilling costs to their investors.

Investment Liquidity

 

Liquidity which is the ability to easily convert an asset to cash, is an important consideration for any investing. Exchange traded products such as stocks, equity options, and listed bonds are examples of liquid financial investments that can be quickly converted to cash during normal exchange trading hours. Liquid financial investments, by trade count volume, are the most commonly structured investment products in the world.

 

If we agree that liquidity is a favorable investment attribute, we must then accept that investment illiquidity is a less favorable and in most cases an unfavorable investment attribute. Lack of liquidity can therefore be considered an embedded investment risk. Illiquid investment must therefore afford some compensatory attributes to remain competitive.

 

The sad fact is that neither we, nor anyone we know of, has created or routinely located an investment product designed for the retail and/or small institutional investor that is readily capable of achieving our investment objectives while at the same time offering liquidity. The benefits of liquidity are largely indisputable. However, as with most any favorable aspect of life, there is an associated cost. Liquidity cost can come in the form of a higher purchase price or higher risk profile. A liquidity premium is most easily quantified when we witness the price increase of an investment asset as it makes the transition from illiquid status to liquid status, such as when a stock in a privately owned company lists on a national stock exchange. It is mostly due to the disadvantages associated with investment illiquidity that we are able to have a realistic possibility for achieving our stated investment objectives.

 

We understand every investor’s goals are unique and that investment goals may change during different stages of life and as a result of life events. If your risk tolerance allows for you to allocate a portion of your investment portfolio towards illiquid investments we are confident we can assist you in achieving investment objectives that are not likely to be realized by investing in exchange traded instruments.

Risk and Reward Analysis

 

An essential element of any investing is the management and analysis of risk. Many investors perceive risk as a factor embedded in the products themselves (e.g. by their very nature, treasury bills are considered safe, while gold is often considered to be risky) in absentia of price information. In our view, risk can be more about the price one pays for an investment than it is about the investment itself, regardless of the perceived quality.

 

Our view of prudent investing dictates that an investor should have a realistic expectation of making three times his/her downside risk in any investment within a similar time frame. Quantifying price risk and measuring upside potential are critical components to any risk-reward analysis.

Articles about secular trend investing:

“Sample Risk Reward

Calculation Before Investing”

Read Article

Investment Risk

 

All investments are susceptible to elements of risk that may result from global/macro events, industry/sector events, and product specific events. As we review a potential investment product we take resolute steps and use our critical thinking to identify and consider each of these risks. We then attempt to quantify how these risks could affect the performance of the investment. Our clients understand and accept the fact that all investments contain risk. We take steps to determine that they have the potential to be adequately compensated, in terms of investment returns, for assuming that risk.

Investment Review Process

 

Once we locate an investment program that meets our investment objectives we conduct an analysis of the investment’s terms and management team.  We begin with a complete review of the offering documents and then engage in a series of conversations with the investment’s senior management so we can gain additional insight into their investment process, operational processes, and risk management practices.

 

Whenever possible we will conduct an on-site review of the investment sponsor’s offices to personally meet with their asset acquisition/disposition teams, operational staff, client service personnel, internal accountants and if applicable their geologists and engineers.  Over the years we have had on-site visits of timberland forests, natural gas and oil drilling fields, conducted aerial surveys of undeveloped land, and have had toured numerous commercial and residential buildings.

 

At the conclusion of our review process we are able to provide clients with a multifaceted understanding into the strategy, structure, processes, and management of the underlying investment.

 

 

Diversification cannot eliminate the risk of investment losses.

Contact

Discover how an Alvery Bartlett Wealth Advisor can help you achieve your long-term financial goals, through investment and wealth management.

Our Process

True Portfolio Diversification

We provide investment opportunities that can reduce portfolio exposure to the shortcomings of the current, widely accepted, narrowly focused investment paradigms.

Learn about our Process

Investments + Services

Real Asset Investments

Our focus is to identify direct investment opportunities such as real estate, energy, timber, infrastructure, commodities and precious metals.

Discover the advantages

News + Insights

Market Letters

and Commentary

To help investors navigate up-to-date global trends and conditions, we provide regular market letters with details on our macroeconomic view toward investing.

Read the latest Insight

Explore Further

Alvery Bartlett Group

8000 Maryland Avenue,
Suite 1031

Saint Louis, MO 63105

EMERGENCY CONTACT INFORMATION

If for any reason you can not reach our St. Louis office location by telephone, please contact Arete Wealth Management, LLC at 312-940-3684 for trading, cashiering and other general assistance.

Securities Disclosure

Registered Representative of and securities offered through Arete Wealth Management, LLC. Member FINRA/SIPC/NFA. Alvery Bartlett Group is independent of Arete Wealth Management, LLC.

 

© 2017 Alvery Bartlett Group. All rights reserved.

Check the background of Our Firm and Investment Professionals on FINRA’s BrokerCheck.

Alvery Bartlett Group

Alvery Bartlett Group