Our Investment Philosophy
In managing client portfolios, Cardinal Point adheres to quality-based principles and maintains a disciplined investment approach. Our investment philosophy is based on three core principles:
Value
Our discipline, patience, and research efforts allow us to maintain a strong understanding of the companies we own while remaining focused on discovering undervalued securities.
Diversification
We believe in a broad degree of diversification and avoid placing large bets on any particular outcome. No matter how attractive the prospects may appear for a given company, industry, or country, it is difficult to determine to what extent positive expectations are already reflected in current prices. Unforeseen negative developments can and do occur.
A diversified approach allows for more consistent and predictable long-term results.
Quality
The vast majority of investments in our portfolios consist of mid- to large-capitalization, high-quality securities. This applies both to the equity component and to fixed income, where we do not lower our quality standards in pursuit of additional yield.
From time to time, we may selectively invest in smaller or opportunistic positions when the risk-reward profile is compelling.
Flexibility and Expertise
Asset Allocation
At Cardinal Point, we believe decisions regarding the appropriate mix of cash, fixed income, and equities are crucial to achieving long-term portfolio objectives. Appropriate asset allocation decisions can only be made after a thorough analysis of each client’s circumstances and tolerance for risk. We do not believe that frequent, wholesale changes to asset allocation or attempts to time the market add value over the long term.
Should changing capital markets or personal circumstances warrant a shift in asset allocation, portfolio managers have the flexibility and expertise to adjust portfolios accordingly.
