Stay Rich vs. Get Rich: Our clients don’t come to us seeking high-octane returns. As institutions and high net worth investors, their primary investment goal is to preserve their capital in any market. In fact, their greatest fear is not underperformance of their investments, but putting their capital base at risk. At Westcourt, capital preservation is the primary factor in determining which investments to recommend.
Stay Ahead of Inflation: Our clients recognize that in times of inflation, the actual spending power of their money diminishes, meaning that in order to preserve their capital in real terms (i.e., keep up with inflation), they must derive positive returns from the capital they invest. With preservation of capital as their primary goal, these returns must be achieved within very conservative risk parameters.
Total Returns: Total returns are the sum of income and the capital appreciation derived from invested capital. Since even the most conservative investments vary substantially in the nature of returns they produce, Westcourt spends significant time with individual clients to determine the suitability of recommended investments based on our clients’ objectives regarding regular income and long-term goals.
Diversification from Traditional Investment Portfolios: Most investors’ portfolios are a variation on a traditional publicly-traded stock and bond portfolio, often referred to as “60/40”. With volatility and correlation in the public equity markets at sustained highs and fixed income returns at record lows, the inclusion of alternative investment classes is a necessary element in constructing “post-modern” portfolios designed to increase total returns to investors without exposing them to increased risk and volatility.