Investment Strategy

Our investment strategy

At Loynd Capital Management we employ a scientific investment strategy based upon the most advanced academic studies to date. A number of these studies and their authors have been awarded the most prestigious accolades in the field of financial research.

Fixed Income Investing

Many investors make the mistake of viewing the fixed income portion of their portfolio in isolation from the overall portfolio. They then seek to maximize the return from both parts independently. This leads to “stretching for yield.” To achieve higher yields you must own higher risk bonds. Conversely, fixed income investments should be viewed as the “anchor” to the overall portfolio. You want a bond portfolio that is constructed to produce low-volatility returns and will most likely hold up during times when your equity investments are not. The risk/reward trade off is better in the stock market than it is in the bond market. With a conservative, low-risk fixed income strategy you can chose to hold a less risky overall portfolio, or devote a higher percentage of the overall portfolio to equities.

Portfolio Construction

By combining superior asset classes with lowly correlated short-term performance, we will pursue the returns you desire with as little year-to-year volatility as possible. Our goal is to accept only the amount of risk that is required to pursue your targeted returns.

First, an individually tailored portfolio will be constructed that is right for your financial circumstances and risk profile. Then the most favorable account(s) structure will be selected and individual investments will be allocated to the accounts where they are most advantageously held. Ongoing portfolio maintenance issues such as rebalancing, tax management, and cash-flow management will be conducted. As new research develops and superior products become available, these opportunities will be incorporated into your portfolio.

Research has demonstrated that owning individual stocks does not increase the likelihood of realizing higher risk-adjusted returns, however it does increase risk. Accordingly, at LCM we discourage holding individual stocks in favor of diversified investment “products.” We utilize asset-class products such as index funds and exchange traded funds. LCM is approved to use the investment products provided by Dimensional Fund Advisors and does so quite extensively. Please note that LCM receives no compensation from DFA in any form.

Dimensional Fund Affiliate

A DFA approved advisor

"The best time to invest was July of 1932. The second best time is today."