Investment Management

Portfolio Construction

Senior Managing Director Bob Schorr discusses Portfolio Construction at KLS

Evolution of Risk

Senior Managing Director Carl Klapper discusses the Evolution of Risk and Fixed Income

Asset allocation decisions are paramount in portfolio construction. We perform ongoing analysis of the risk/reward dynamics in the markets and across asset classes, which is then applied to each individual client portfolio.

Our portfolios include diversified domestic and global long equity managers, high-credit and nationally diversified municipal bonds and a significant allocation to tactical managers. Our allocation to tactical managers allows for participation across a wide range of asset classes, including: emerging markets, commodities, sovereign debt and currencies, while having the ability to employ hedging strategies to mitigate risk.

The core principles of our investment strategy are:

  • Risk and reward are always correlated
  • There’s someone on the other side of every trade
  • Proper diversification across and within asset classes is essential to mitigate risk

Or, put simply:

  • If it sounds too good to be true – it probably is
  • There’s no free lunch
  • Don’t put all your eggs in one basket

Our investment management will include:

  • Portfolio construction
  • Investments held in company retirement and compensation plans
  • Company stock options and concentrated stock positions
  • Children’s trust accounts
  • Analysis of private investment opportunities