The advisors at Strataxa use Brookstone's Risk-Appropriate Investment Strategy Evaluation (RAISE).   ​

The guiding principle of RAISE is that it's critical to defend against the severe impact large drawdowns can have on the long-term growth of an investment portfolio.

 

Unlike conventional portfolio managers that may rely on static, retail-orientated approach to asset allocation, we take an approach that utilizes an array of innovative, actively managed investment strategies, each with its own built-in risk management methodology.

 

Buy-and-hold may work during an era of record-setting bulls runs, we think it can be detrimental to portfolios in this modern era of dramatic market swings.

There are 4 integrated steps to help RAISE Risk-Managed Investment Goals

Each step is dependent upon rigorous research and active management.

1.

Maintain An All-Weather Investment Platform

Equity

Our Equity strategies invest
primarily in stocks, mutual
funds and exchange-traded
funds (ETFs). Securities can vary
based on market capitalization
(size), industry, sector and
geographic location. BCM
sub-advisors employing equity
strategies typically use
fundamental or technical
analysis, or a combination of
both and commonly
differentiate between growth
stocks and value stocks.

Equity investments are typically

considered to be riskier than
fixed-income (bond)
investments as they historically
have a higher standard
deviation but have also typically
provided higher returns.

The Fixed Income strategies we
utilize invest primarily in debt
securities via bonds, mutual
funds and ETFs. Debt securities
can vary based on issuer (e.g.,
corporations, governments and
municipalities), coupon
(interest rate) and maturity. Our
sub-advisors use these
instruments to provide income
while analyzing the trade-off
between the price and yield of
the debt instrument, the
issuer’s credit quality, inflation
expectations, and interest rate
movements.

Fixed Income investments are
typically considered to be less
risky than equity investments
as they historically have a lower
standard deviation but have
also typically provided lower returns.

Fixed Income

Our Correlation strategies
invest in a blend of asset
classes such as equities,
fixed-income and
commodities, and do so by
investing directly in the
underlying security or through
the use of mutual funds and
ETFs. Sub-advisors employing
correlation strategies typically
analyze securities based upon
their historical and anticipated
correlation to one another.

Some of our correlation

strategies have a relatively
fixed asset allocation with a
blend of low-correlated
securities while others employ
a dynamic asset allocation with
a blend of securities that may
exhibit higher correlations.
Either may change based on
the rules of the strategy

Correlation

Volatility

Our Volatility strategies seek
to provide capital appreciation
through the use of options,
whose prices are based
primarily on the volatility
expectations of the underlying
investments. BCM sub-advisors
that utilize Volatility strategies
typically buy and sell one or
more options contracts (i.e.,
puts and calls) based on a
mathematical approach that
attempts to quantify the return
and risk of the investment
up-front.

These strategies typically
attempt to provide growth over
broad market cycles. Options
strategies are typically
considered to be “complex
financial instruments” and
may involve significant risk

Based on their methodology
and investment goals, Brookstone strategies will follow either a Tactical or Strategic Approach to investing.

Tactical Approach

Strategic Approach

Employs a range of processes to dynamically
adjust and adapt portfolios in an attempt
to optimize changing market conditions.
These processes may include technical,
fundamental, and quantitative analysis.

Typically sets target or fixed asset allocations
and then periodically rebalances the
portfolio back to those targets as investment
returns skew the original asset allocation
percentages. 

Maintain An All-Weather Investment Platform

2.

Partner With Innovative Portfolio Managers

Why We Use Boutique Managers

At Brookstone, we take our fiduciary duty very seriously. As a result, we constantly review our investment platform and money managers to ensure that each strategy adheres to our risk-managed investment philosophy.

 

In our pursuit of flexible money managers with a competitive edge, we are often led to boutique firms that typically run far fewer assets than many of the mega-fund shops. We believe that a smaller asset base enhances a manager’s ability to capitalize on opportunities and makes them less prone to deviate from a process just to accommodate a growing asset base. 

We’ve been pleased to maintain longstanding exclusive or near-exclusive relationships with a number of successful boutique firms. These are firms that aim to manage capital and deliver solid investment solutions for clients. When we go into partnership, they know the expectation is designed to generate risk appropriate returns and to limit large drawdowns. 

Partner With Innovative Portfolio Managers

2.

3.

Emphasize Strategy Diversification

By having the ability to blend these strategies, we feel our clients’ portfolios benefit from our philosophy of strategy diversification. This is a next-level measure of diversification designed to mitigate drastic downturns so investors can take advantage of the benefits of compounding returns.

It harnesses several strategies that already have diversification and risk-managed methodologies built into their portfolios—in other words, diversifying among risk-managed models.

As always, our main goal is to minimize risk and limit large-scale losses. By doing so, we think there is more opportunity to experience the power of compounding returns. We believe that diversification across multiple risk-controlled strategies like this helps manage wealth and longterm
performance.

We utilize strategies that emphasize risk management, whether through hedged equity with the use of options, tactical strategies to
dynamically adjust to market conditions, or other
risk management practices.

4.

RAISE Your Expectations

With all these tools at their disposal, we think our clients will be well equipped to meet the demands of unpredictable markets. The depth and breadth of our investment platform is a considerable advantage in strategizing clients’ current financial picture and future financial goals—and their tolerance for risk. 

 

By condensing this platform into a Risk Profile Questionnaire (RPQ), we make it clear to both advisor and investor what investment solutions are best suited to individual investors, from conservative to aggressive risk tolerances. While there are several other factors to consider along with the results of the RPQ, it does help serve as a guide to building an overall financial solution. 

Flexible portfolios that can quickly adapt

By partnering with experienced,
innovative money managers, we
can actively assess global market
conditions to make real-time decisions based on market trends.

Diversified Return Opportunities

By actively managing to a downside risk threshold, we work toward limiting severe losses. We believe this strategy gives investors the opportunity to experience long-term results though
compounding (see figure below).

Return potential across full market cycles

We believe our investment goals
reflect what many of today’s investors are seeking—a steady approach to generating returns while carefully navigating market turbulence. We seek to maintain this consistent, incremental approach.

Our RAISE process is designed to protect and grow wealth.  It considers each client's risk tolerance and aims to limit significant drawdowns. Our goal is to build long-term investments that experience the power of compounded returns. Too see how we can help you, contact our advisors by clicking here.

Darryl Rosen MBA, RICP

Darryl Rosen is the founder of Rose Advisory Group, and operates www.RealRetirementAdvice.com as a way to help others create their ideal retirement. He is obsessed with helping people create safety, simplicity and strength in their financial future. Darryl’s clients enjoy his straight-forward, plain-spoken guidance, strategies to minimize taxes and ability to generate investment returns, while minimizing risk so his clients can sleep at night! Darryl is licensed to provide guidance on securities and insurance solutions and has achieved the highly desired Retirement Income Certified Professional (RICP) designation.

Darryl is the creator of the well-known SECURiMENT™ Retirement Planning Method. A simple to understand and implement planning method that demystifies retirement planning so that people can take action. Visit Rose Advisory Group to learn more! 

Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor.  BCM and (Rose Advisory Group) are independent of each other.   Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Information provided is not intended as tax or legal advice, and should not be relied on as such.  You are encouraged to seek tax or legal advice from an independent professional.