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BAKER STREET ADVISORS, LLC
Philosophy
Certain precepts shape the advice that we give our clients. The most important of these include:
Diversification
Asset allocation is the primary determinant of long-term returns and
volatility of returns.
Risk Control
The calibration of risk is of prime importance in an investment
program.
Knowledge
Investors should understand the risks that they incur and avoid risks
for which they are not compensated.
Simplicity
Economy, simplicity and reliability in an investment program
enhance the likelihood of success.
Foresight
Investors who take a long-term perspective and can withstand
short-term volatility have an advantage over other investors.
Insight
Our advice is based upon well-founded principles and is
consistently applied to our clients.
Detail
We endeavor to understand the particular circumstances of each
client and develop our advice accordingly.
Performance
Our clients seek the highest after-tax, risk-adjusted rates of return.
In constructing a portfolio, the precepts listed above lead us to following conclusions:
- Fees and tax costs present a serious hurdle for active stock managers, one that they are unlikely to overcome. Hence, we pursue
index-oriented equity strategies. - The inclusion of alternative asset classes can improve the risk-adjusted returns of a portfolio. These assets can include:
commodities, real estate and absolute return strategies. - The reduction of fees and taxes can serve as an enhancement to returns.