Portfolio Management & Diversification
Building and maintaining a mix of investments across different asset classes so that no single market decides your outcome.
- Typical holding period
- 3 to 10 years
- Asset classes
- Equity, debt, gold, cash, satellite alternatives
- Rebalancing
- Semi-annual, plus a threshold trigger on drift
- Review cadence
- Quarterly written review with the client
- Minimum investment
- [PLACEHOLDER: minimum corpus]
The core mandate, and the one everything else is sized against. A written allocation across equity, debt, gold and a deliberately small satellite allocation to crypto, rebalanced on a schedule rather than on sentiment.
The allocation is written down before anything is bought
Every mandate starts with a written statement covering your time horizon, income needs, existing holdings and the largest loss you could absorb without changing your plans. The allocation follows from that document. Nothing is purchased before it exists, because an allocation decided after the fact is just a description of what happened.
Diversification means holding things that disappoint at different times
Assets that fall together are not diversification regardless of how many of them there are. The portfolio deliberately holds positions that will look wrong at any given moment — that is the mechanism working, not failing. Gold is expected to lag through a strong equity run; debt is expected to look dull until it does not.
Rebalancing is scheduled so it does not require courage
Weights drift as markets move. Rebalancing on a fixed schedule and on a drift threshold sells what has run and buys what has lagged, mechanically. Putting it on a calendar removes the moment of judgement, which is exactly the moment investors get wrong.
Speculative sleeves are capped by the mandate
Where a client wants exposure to the crypto or short-term trading books, it is sized as a satellite allocation with a hard ceiling written into the mandate, funded from a portion of the portfolio you could lose entirely without affecting your plans.
What can go wrong
These are the specific ways this desk loses money. They are listed here rather than in a footnote because you should read them before deciding, not after.
- All investments carry market risk. Diversification reduces the impact of any single market but does not prevent loss, and correlations between asset classes tend to rise in a crisis, which is when diversification is most needed.
- Asset allocation does not guarantee a profit or protect against loss in a declining market.
- Debt holdings carry interest rate risk and credit risk. Equity holdings can fall for extended periods.
- Returns shown for any past period are historical and do not indicate future results.