Investment Management

The process of portfolio management begins well before we select individual investment for your portfolio. All investment advisors manage money differently. Before working with an advisor, it’s important to understand what they believe, as this shapes their process and guides their decision making. You can read about our view of the investing world by reviewing our Investment Philosophy.

General Investment Thesis

In order to get our clients where they want to go, we have to anticipate the road ahead. When Christopher Columbus sailed for India, he believed the world was round. He was headed East to finish in the West. He believed in his theory and boldly implemented his plan. At Compass Financial, we start in a similar place, endeavoring to understand the financial world in front of us and developing a comprehensive thesis on what that “world” looks like. Armed with our thesis, we can boldly chart a course for client success.

It’s important to note however, that our thesis is continually in review. During the journey to the “New World”, Columbus faced an ever-changing environment. New external forces were encountered every day. The same is true in the world of investing and portfolio construction. We realize the value of being flexible and are willing to adjust our course as if the prevailing market or economic winds shift.

Your Objectives & Tolerance for Risk

Who knows what would have happened if Columbus set sail aimlessly. But that’s exactly what we see many people doing when it comes to investment management. In order to be a successful investor, we have to identify specific goals and be able to measure the progress towards those goals. Without that kind of clarity, how will you ever know if what you are doing is working?

Equally important at Compass Financial is risk management. Did you ever wonder why Columbus took three ships? If he took just one and it sank, his mission was over. By adding two more, he greatly increased his chance for success while reducing the overall risk of the journey. In the investment world, we call that diversification, or the art of blending different types of investments into a cohesive portfolio that both reduces overall risk and enhances the potential for success.

Each client also has a specific risk tolerance. This can be thought of as their personal comfort level with risk or volatility. While taking on more risk may result in greater long-term returns, you have to be able to ride out the storms. Because it’s critical for us to provide an investment experience you can tolerate, we spend time evaluating and confirming each client’s risk profile. From there we can use our knowledge and experience to construct a portfolio that will function within your comfort zone.

Grounding Principles

With more than 40 years combined experience in the investment world, we have traveled through a multitude of different market climates. During that time, we have developed our own beliefs regarding successful investment management. Here’s a short list of some of the more critical factors that guide our portfolio construction process:

  • Combination of active & passive investing
  • Minimization of costs
  • Targeted risk management
  • Systematic diversification strategies
  • A combination of value and momentum styles

Click here for a more detailed overview of our Investment Philosophy.


There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.