Did you know that as an investment adviser much of what we do is analyze the performance of investment managers and not just investments.
Once we have developed an investment strategy that aligns a client's goals with their risk tolerance, we then analyze suitable investment managers to find the best fit. We evaluate managers based on Five P's.
The first of the five is PROCESS. What process does the investment manager use? Is it consistent? Are the results trustworthy? Does it fit the client expectations?
Second is PERFORMANCE. Though performance is relative, there are expectations of how a manager should perform based on objectives and market conditions. Does the investment manager meet those expectations?
The third is PRICE. This is another term for cost. Is the investment manager able deliver the expected results cost effectively.
Fourth is PHILOSOPHY. Is the investment manager strategic? Tactical? Market sensitive? A market timer? Have they remained committed to their investment philosophy? Does this philosophy align with client expectations?
Finally, the fifth is PEOPLE. What is the quality of the management team? Has there been significant turnover? How much education and experience do they have?
Managers that pass our Five P’s analysis are considered to manage a client’s portfolio.
At Capitol Wealth Management, our clients deserve the best due diligence we can provide and this is one of the unique ways we stand out in a crowded financial marketplace. We hope this information is helpful and you will contact us at [email protected] if we can help enhance your portfolio.