Clients of Andresen & Associates have varied risk tolerances. Some of our clients are extremely risk averse and choose to maintain portfolios comprised largely of bond mutual funds characterized by lower levels of volatility. Others accept a much higher level of risk, and invest in aggressive equity mutual funds. Most of our clients have moderate risk/reward preferences and are most satisfied with blended portfolios.
Regardless of investment preferences or account size, we offer all clients the same high level of service and commitment.
Our Investment Strategy
- DIVERSIFY. We invest widely across multiple spectrums of financial markets.
- PICK SUCCESSFUL, ESTABLISHED MUTUAL FUND MANAGERS WITH SIMPLE TECHNIQUES. Mutual funds provide us with necessary information and liquidity. Fund managers must be capable. We believe that if we can’t understand their management style, they probably can’t either.
- IDENTIFY RISKS AND CHOOSE AN ACCEPTABLE LONG-TERM LEVEL. We will never know all the risks in any investment. This is another reason why diversification is so important.
- WATCH OUT FOR ASSET SIZE AND TAXES. Asset size becomes more critical as a mutual fund invests in smaller stocks. Taxes, of course, are a vital consideration for all of us.
- BE A MILD CONTRARIAN. We cannot “time” the market; however, we can be cautious about what is overvalued and more enthusiastic about what is cheap. “Mild” means we do this with just a portion of our money. We keep the rest invested for long-term results.
- WEED THE GARDEN. We sell our losers and we keep our winners. Once we feel that we have identified a “dog,” we don’t wait for it to recover. We invest in something else that will give us the excellent management we expect.
Your Money at Work
- Your investment portfolio should target your unique financial objectives and reflect your specific level of risk tolerance. Our initial meetings, which might include you and any members of your financial team, are intended to define your personal needs and expectations.
- Once the initial investments are in place, we will prepare a report for you after every calendar quarter. This quarterly report will show you the details and performance of your investments.
- Our work together will usually be a work in progress. As time passes, your life will change, and thus your needs and goals may change. We will always be ready to alter the portfolio in response. Sometimes markets will be difficult, and sometimes they will be very rewarding. Throughout any market cycles, we will continue to work with you to maintain a disciplined, long-term plan based on investment realities.
- We will bill you for services performed at the conclusion of each calendar quarter. In most cases, our fee is one-quarter percent of all assets under management for each quarter.