Investment Management

Today’s market demands a new way of thinking about how to make money.  The “old days” of buy-and-hold investing are long gone, never to return.  These days we need to be more fluid in our portfolios so that we can participate, protect, and grow our money.

This is how we at Alterra Wealth Management structure our clients investments using a dynamic risk management process to increase or reduce risk exposure in a portfolio.  Unlike static buy-and-hold models, the PPG (Participate, Protect, and Grow) process dynamically changes an investor’s risk exposure by changing their exposure to equity in the portfolio.  In periods of rising markets, equity exposure is increased.  In periods of market decline, equity exposure is reduced.

When equity exposure is reduced, exposure to cash or cash alternatives is increased.  Unlike most buy-and-hold models, cash is used in lieu of other fixed income alternatives that are subject to market risk.  This dynamic process reduces the investor’s overall downside volatility.  It preserves capital while markets are dropping and maximizes upside volatility exposure in positive market cycles.