Our focus on your individuality is our difference

Investment strategy

Investment strategy

Our advisors follow an investment strategy that provides them with not only operational efficiency, but also enables them to create your portfolio based on your individual preferences, needs, values and goals. This is because it is a process of collaboration between you and our advisors.

It is also a strategy that grants transparency; our team will inform you of decisions and reasons, and help educate you regarding the investment process. Our professionals believe that informed investors make the best investors because knowledge helps create confidence in the investment pathway ahead.

Evaluate the investment environment

There are many overarching conditions that affect investments including economic, political and financial forces. Our team will use forward-looking capital markets assumptions to identify long-term themes and how best to plan for them. Because many different environments present themselves over the course of a complete market cycle, the investment team will also monitor current economic conditions and make tactical adjustments when apparent determinable circumstances warrant.

Manager Selection

Our team, with the help of Raymond James' Asset Management Services, consistently searches for and evaluates potential preferred managers in all asset classes including tactical, stock, bond and blended styles. To evaluate managers, we use quantitative analysis to look at a manager’s risk-adjusted performance, at underlying causes for over- and under-performance periods, and the manager’s methodologies for investment selection is looked at qualitatively.

Once a potential manager is identified, he or she will be tested quantitatively against managers already on our firm’s list.

Model Design

Our team follows generally accepted asset allocations with a blend of stocks and bonds that have been evaluated regarding their individual risks versus potential returns. Long-term themes and current environmental conditions will also influence the portfolio mix (e.g., more of one type of investment and less of another).

Model design will also evaluate the use of managers who are skilled in tactical management. Tactical managers have the flexibility to react and shift portfolio holdings to take advantage of current market conditions.

Portfolio Development

Once the design is established, individual managers whose abilities are well suited to the design are selected from the preferred manager list. As a portfolio is built, each investment will be chosen based on the performance requirements created by design goals and carefully aligned with tolerance for risk assumptions. To evaluate investment performance, our team will set benchmarks for each model to gauge how each investment performs in regard to the level of risk it provides.

Monitoring

Ongoing portfolio performance is evaluated with particular attention to quarterly variation from assigned custom benchmarks. Individual managers are also measured against peer group.

  • Any manager not in the top 50% of his or her peer group for a trailing one-year period will be evaluated for causality and determination of consistency with forward-looking assumptions
  • Any manager in the Top 20% of its peer group for trailing three-year period – a “yellow-flag” indicator – will be evaluated to determine if relative performance is in keeping with his or her historical performance and if it still is appropriate investment given our forward looking analysis.
  • Any manager in the bottom 50% of its peer group for trailing one- and three-year periods will be removed from a portfolio unless overwhelming causality for keeping him or her can be determined

Model and Portfolio Re-evaluation

Semi-Annually, our investment team reviews each strategy design to determine if environmental conditions require adjustments need to be made to any allocation; this includes manager changes, if any. Forward-looking capital market analysis is made annually and models are adjusted accordingly.

Circumstances may, from time to time, cause our investment team to evaluate and/or change strategies and/or portfolios more frequently.

There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Diversification and asset allocation do not ensure a profit or protect against a loss. Above services mentioning manager selection and monitoring are provided through Raymond James Consulting Services.

It’s important for clients to know not only what investments they own, but also why they own them.

Securities offered through Raymond James Financial Services, Inc., member FINRA/ SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Bacon Financial Advisors is not a registered broker/dealer and is independent of Raymond James Financial Services. Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact our office for information and availability. Raymond James financial advisors may only transact business in states where they are registered. Follow-up and individual responses involving either the effecting of or attempting to effect transaction in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where the financial advisor is not registered.

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