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 their equity and fixed income positions 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” of the overall portfolio. You want a bond position 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 tradeoff 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.
By combining superior asset classes that have historically demonstrated 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 (individual, joint, IRA, Roth IRA, etc.) 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, individual stocks do increase risk. Accordingly, at LCM we discourage holding individual stocks in favor of diversified investment “products.” We utilize asset-class products 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.
How Can We Help You?
“A thousand money managers…expect to do 3% (annually) better than the mob. Hardly ten of one thousand perform in a way that convinces a jury of experts that a long-term edge over indexing is likely.”
Paul Samuelson, Phd.
Recipient of the 1970 Nobel Prize in Economic Science
From: Bogle on Mutual Funds, Forward, p. iv