Note: The below is a general overview of JEDI’s investment philosophy and approach. The specific investments utilized always depends upon the unique facts and circumstances of each client.

  • Rooted in a historical and factual-based context.

    • As compared with an emotional and opinionated one.

  • Disciplined and consistent approach that does involve periodic modifications and adjustments when and as necessary.

  • Favor simple over the complex.

  • Asset allocation:

    • Driven principally by (a) the anticipated date when funds will be needed and the timing of distributions along with (b) one’s risk tolerance.
      • Buckets of funds depending upon the purpose and ultimate need for funds within the portfolio.
    • Holistic approach which incorporates a client’s (and any other immediate family member’s, such as a spouse’s) entire financial condition (e.g. balance sheet, cash flow, quantitative and qualitative factors, future plans, etc. ) and unique facts and circumstances.
    • Single largest driver of investment returns and risk.

  • Diversification:

    • Both among and within asset classes. The greater the assets being managed, the more sub-asset classes that can be incorporated within the overall portfolio.

      • Stocks
        • Domestic and international
          • Inclusive of global (both); greater emphasis on domestic.
        • Large, mid and small
          • Inclusive of all-cap (all).
        • Growth and value
          • Inclusive of blend (both); greater emphasis on value.
      • Bonds
        • Domestic and international
        • Credit quality and duration
        • Issuer type
      • Real estate
        • Real estate investment trusts
        • Real estate operating companies
      • Alternative asset classes
        • Gold
        • Other types of commodities
      • Cash
        • Money market fund (Govt.’ and/or Govt.’ Backed)
           

    • Effectuated by owning baskets of securities through no-load mutual funds (open-end) and exchange-traded funds.

      • Both active and passive (index or hybrid index/blend, or combination of the two) funds are often utilized depending upon the construction and dollar totals of the client’s balance sheet and investment portfolio.
      • Perform ongoing analysis of existing and prospective funds based upon criteria and standards we believe to be important.
        • Utilize both diversified and concentrated (non-diversified) funds (the former to a considerably greater degree).
        • Include both style-specific and style-agnostic (more flexible/unconstrained type) funds.
        • Seek funds which complement the total portfolio.
        • Favor select balanced funds which tend to have good risk-adjusted returns over long periods of time.
        • Where possible, prefer multiple managers/committees to one single manager with actively managed funds.
        • Always seeking back-up funds that can be used in the event one or more funds close and/or need to be replaced for a specific reason.

  • Rebalancing:

    • Core (e.g. based upon moves up/down of greater than a threshold % among the various components of the portfolio).
    • Satellite (e.g. based upon one or more indicators such as relative and absolute valuation levels).
    • Either performed on a regular basis (e.g. annually) or based upon permissible thresholds established for each given investment.

  • No market timing/trading based upon anticipated events.

    • Inability to generate consistent and superior returns over time.

  • Avoid the big hit:

    • Focus on potential downside risk and protection of principal first and foremost.
    • Seek singles and doubles as opposed to home runs and strike outs.

The JEDI Way

  • Fee-only approach to investment management:

    • No conflicts of interest or hidden biases with respect to the investment selection and ongoing monitoring process.
    • Interests mutually aligned with clients as payment is never paid by a product provider.
    • Ability to invest freely, unconstrained by any restrictions.
      • This includes our (1) authorization to utilize Dimensional Funds;
        (2) capability of investing in certain load (commissioned) mutual funds absent any load (purchases made at the fund’s net asset value);
        (3) ability to access institutional share classes among funds offering such share classes despite individual account investments not meeting the typical (prospectus contained) fund requirement; and
        (4) approval from one or more investment companies to utilize certain of their closed mutual funds with clients not presently invested in such funds.

  • Use of an independent custodian:

    • JEDI never has access to client funds regardless of whether it has discretionary trading power over an account.
    • Statements sent directly to clients.
    • Online account access for clients.
       

  • Relationship-oriented and holistic approach:

    • Consider all of a client’s relevant financial attributes in designing an investment program – and modifying this over time as necessary.

      • As a Registered Investment Advisor and Wealth Management Firm, JEDI’s services encapsulate the entirety of one’s personal financial and/or business planning – which assists us even in working with investment-only clients.

    • Periodic client communications through reports, articles, emails, phone calls and meetings.

  • Same Team/Eating our own cooking:

    • Utilize many of the same investments for our personal accounts as we do for clients.