Our Investment Process

Our team at Raymond James uses a rule-based investment system to manage client portfolios. It is a top-down approach based on the concept of relative strength. Relative strength is a method of analyzing financial markets to determine which asset group(s) to invest in and which to avoid. We also apply it to geographic locations, sectors, industries, market caps and individual securities.

Our rule-based system is designed to ignore the short term market noise and focus on the intermediate to long term strength or weaknesses of securities. It also helps avoid the many pitfalls of investing, such as value traps, poor timing, security selection, emotional decisions and personal biases.

Once a security is placed on our buy list, we determine suitability and the appropriate positioning size for clients. We also establish trigger points to reassess our investment thesis. In addition, our team’s investment committee meets monthly to discuss risks and opportunities.

While incurring a loss may be unavoidable when investing, not having a system in place to minimize the loss is unacceptable. We believe controlling the loss to preserve capital is equally as important as the initial investment. Systemizing the buy and sell decisions are an integral part of our investment process.