A Completely New Approach to Capital Conservation

A Unique Time

Most of the money we manage for our clients is earmarked for retirement, either present or future. For this reason, we are especially concerned about capital preservation; about minimizing losses; about doing everything in our power to earn positive returns even during times when stock prices are falling, as they were in 2000, 2001 and 2002. During those gloomy years of the “bear market”, we were able to identify several asset classes that represented good value… small cap stocks, mutual funds that adhere to a deep-value discipline and, of course, long-term bonds that rose in price as interest rates declined. Emphasizing these asset classes allowed us to preserve capital and earn a fair return for our clients despite a nearly 40% drop in large cap stock indexes over those three years.