OUR INVESTMENT APPROACH

At a time when extreme market volatility is testing the resolve of investment managers, we believe the benefits of our active, disciplined investment approach can become increasingly apparent. Schmitz Capital Partners strives to offer outstanding advice driven by a true understanding of our clients’ objectives, willingness to accept risk, through economic analysis, intelligent market insight and the tenacious pursuit of enhanced value.  We exist to simplify our clients’ financial lives through a collaborative and inclusive approach to investment management.  We believe that our investment approach, which we feel is different than many of our competitors, strives to retain a sharp focus on pre-defined risk tolerance levels and the preservation of our clients’ capital.

FOCUSED ATTENTION

Today’s uncertain economic climate demands dedicated focused attention.  We believe the classic “buy & hold” and more passive strategies will not consistently achieve targeted objectives as portfolios are subject to unprecedented volatility and economic uncertainly.   The economy and financial markets are dynamic and we believe that a proactive and flexible investment approach is needed to effectively manage portfolios and respond to the rapidly changing environment.  To meet their objectives, we believe that investors can’t afford to ignore short-term volatility or risk to capital.  We aim to implement investment strategies that are highly liquid and adjustable to any market condition, establishing a desired balance of preserving capital while still pursuing growth in any environment.

MULTIPLE MANAGERS & ASSET ALLOCATION

At Schmitz Capital Partners, we believe that achieving long-term investment performance is rooted in asset allocation decisions, rather than individual security selection.  The portfolio’s asset allocation will determine the potential for return and exposure to risk.  Therefore our investment approach focuses on selecting asset classes and fund managers, rather than specific securities.  By combining the benefits of active, professional investment management with a diversified, customized asset allocation strategy, we have developed an approach that aims to reduce portfolio volatility without sacrificing potential returns.

MULTIPLE INVESTMENT STYLES

There is currently no research that definitively suggests a single-style, best-of-breed portfolio strategy. The economic climate may warrant a review of certain passive, active, tactical, flexible or dynamic strategies.  Therefore, we are not married to any single type of strategy.  We believe a more flexible, proactive approach adds significant value.  Our ability make changes and invest in securities/sectors/strategies that are not widely followed/recommended by larger mainstream banks and wire-houses, allow us to be more responsive to changes in market conditions and may present opportunities to deliver enhanced value. 

Prevailing market conditions have coaxed us to gravitate toward a “core/satellite” asset allocation strategy.  A core/satellite strategy is a marriage between the strategic and tactical asset allocation strategies and essentially divides the portfolio into components.

  • The first component includes a holding of various funds which we believe will perform well given our current economic outlook.  They often represent more passively managed funds that have lower transaction costs, lower turnover and are tax-efficient.
  • The remaining part of the portfolio is the “satellite” portion employing a more active, tactical strategy to try and take advantage of particular opportunities that may add return, further diversify or reduce volatility (hedge).


Investors should be aware that investing based upon strategies does not assure a profit or guarantee against loss.

Investing in mutual funds involves risk, including the potential loss of principal invested.  Risks vary depending upon the strategy used by the fund as well as the sectors in which the fund invests.  When redeemed, shares may be worth more or less than the original amount invested.