Our Dual Approach
Passive and Active Investing
We believe passive and active styles of investing are like salt and pepper. They go well together, and everyone has an opinion about what suits their particular taste.
Passive index-based investing stands on solid theoretical grounds and has strong empirical support. It is transparent and low cost, and has proven to beat the majority of active investment strategies. Passive portfolios do not attempt to “beat the market.” Rather, passive portfolios try to “be the market,” — or at least be very close. Passive index-based management does not involve taking any company-specific risk.
As our client, your particular passive index portfolio is built within your own risk tolerance band. Each index Exchange Traded Fund (ETF) in your portfolio is selected based upon disciplined criteria: low fees, trading liquidity, desirability of the asset class, and minimal tracking error.
What’s the best balance of Passive and Active strategies?
Salt & pepper, peanut butter & jelly, passive & active: there is no universal formula to suit everyone. However, there is a best balance of passive and active investment strategies for you which is based on the particular circumstances of your life. Determining your best balance is one area where we can be helpful.
Price Wealth Management offers three actively-managed institutional strategies which pair favorably with indexed portfolios, a dividend-focused portfolio, a growth portfolio, and a special situations portfolio. The strategies are managed by Will Thompson, our Chief Investment Officer.
Active Portfolio Characteristics
- Long-only. Securities are not be sold short, nor is margin debt used.
- Sensible Diversification. Clients should expect 35 or fewer portfolio holdings.
- Long-term Focus. We have a long investment time horizon.
- Tax Efficient. We will actively harvest tax losses to reduce your taxes.
- Personalized. We handcraft portfolios to uniquely suit you.
- Balanced Portfolios. All active portfolios can be combined with taxable or municipal bonds.
Advisory services offered through Hayden Royal LLC, an SEC-registered investment advisory firm. Price Wealth Management may only conduct business with residents of the states for which they are properly registered.