Look Forward and Back Before Rapidly Changing Direction

Do you remember your parent(s) or best friend yelling something like the title of this blog in something well above their normal speaking tone repeatedly during your first driving lesson? It seems most activities the younger set were involved with were always about moving forward. It seems that that pathway was also the obvious one to choose to navigate the challenges of a heavy course load in college. Without exception, early employers also seem to appreciate the most eager candidates with energy and drive to spare. Working fast on Wall Street certainly was a way to be recognized, especially if you could avoid the big mistakes that produced painful economic consequences.


Managing portfolios for individuals, foundations, and pensions for retirees is not about speed. It is about conserving and growing capital for the intended beneficiaries.


This past weekend I started to review our results year to date, achieved in a fairly tumultuous environment. Without getting into specifics, generally our asset allocation choices and investment selection have performed well. Our bond portfolios across all segments were positive and provided stability when combined with equities. Our allocation to international equities (primarily Europe) was quite successful and outperformed our domestic holdings by a considerable margin.


The year isn’t over and the geopolitical landscape is still quite fragile. We have moved some additional capital into bonds earlier this summer as a buffer against increased volatility. I still believe the increase in bond holdings is warranted.