People are Demanding a More Robust, Proactive, Transparent and Reliable Approach...We Always Believed that Day would Come...
WHY THE SMART MONEY USES A MODULAR FRAMEWORK...
There is no better example of the limitations of traditional portfolio management then what most people are seeing happen to their investment portfolios and 401k plans right now. The traditional Approach, MPT ( Modern Portfolio Theory) which was developed in the 50's and has been adopted by the industry for the mass market, offers diversification among asset classes and market segments but offers little to manage market risk or multiple time horizons, mainly because it is backward looking. Therein lies the problem. Take a minute to read: "Passive is not enough - Charlie Needs Cash Flow", written by a very astute advisor, it illustrates this point well. (Written in 2006, this is clearly not Monday morning quarterbacking). The current environment and changing needs of todays investor just bring to light the need for a more forward looking and flexible strategy.
The Modular Approach is simply more adaptive to your personal circumstances, return requirements, time horizon and appetite for risk then the traditional approach. It does not abandon the benefits of diversifcation, it uses MPT as it's foundation, but takes portfolio construction and risk management to another level. It provides us with the ability to adjust your portfolio as market conditions change or warrant. Successful investment management is about managing risk, not avoiding it. This is not a revolution, it's evolution, pure and simple, dictated by the demands of the 21st century. By separating the components of risk and return, we are better able to seek returns and manage risk at the same time, with the goal of compounding positive returns and minimizing the volatility. That is the essence of portfolio management and the advantage of the MODULAR APPROACH.
While new to the MAIN STREET investor, this framework has been used by the leading Ivy League Endowment funds and other professional investors for years. Our approach has been adapted to deliver the benefits to the private investor, without incorporating the use of hedge funds, private equity or other opaque structured products. The Modular approach is beginning to appear on Main Street, but very slowly and from specialized providers. The reason you have not seen this at the retail level and probably won't for quite some time is that it is not geared for the mass market. (See the Main & Wall Story). The Modular approach is more collaborative in nature, is more robust on the front end, requires an open platform and a different mind set, skill set and fee structure then the one most large financial institutions have in place for the individual investor. That's why people come to MAIN & WALL... to upgrade to a Modular Approach and move ahead of the crowd.
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