Our approach is inherently different by proactively managing downside risk using a well-defined, systematic process.
SEASONS AND WEATHER PATTERNS
As a Colorado-based firm we experience a wide range of seasons and changing weather patterns. It is not uncommon for us to have warm, beautiful days in the middle of the winter as well as cold, miserable days in the middle of summer. As such we remain keenly aware of the forecast, and we always have enough options in our wardrobe to cover the bases.
We approach investing the same way. Capital markets move through long-term, secular cycles (Seasons) that typically begin and end with extreme levels of over or undervaluation. Within these Seasons there are short and intermediate-term trends (Weather Patterns) that are driven primarily by investor sentiment and economic performance. We are constantly assessing these Seasons and Weather Patterns and "dressing" client portfolios accordingly. One of the primary differences between Season Investments and many other firms is our willingness to adjust exposure to risk assets and hold large amounts of cash as a strategic asset when warranted.
THE BEST OFFENSE IS A GOOD DEFENSE
Our core belief is that making money over time is more about protecting against deep drawdowns than it is about squeezing out every ounce of upside during bull markets. Conventional wisdom in the investment industry would say that if you want less risk you must accept lower returns. We disagree. By monitoring and managing around the market's Seasons and Weather Patterns we believe we can achieve better results by mitigating deep drawdowns and compounding steadier returns over full market cycles. The philosophy of playing good defense to produce better returns is in sharp contrast to the classic buy-and-hold mantra.