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Philosophy

So, what sets Stone Bridge apart?

Our overall investment philosophy is simple: volatility matters and has lasting impacts on our clients' portfolios. Our risk-management theme, focused on market volatility, resonates throughout our investment strategies and solutions.  It is also a product of the past investment experiences of both our portfolio managers, David Babb and Erik Boehm.  Both began their investment careers in the mid 1990s–one in the southeast, the other in Eastern Europe.  Although they were separated by two continents and were managing different asset classes (fixed income and emerging market equities, respectively) the same valuable investment lessons were being learned: the world was interconnected and investors–individuals and institutions, alike–did not enjoy downside volatility. 

So what is it about our philosophy that makes us different?  To start with, we have a process-driven investment approach.  Through conversations with our you, our client, we identify your specific needs and goals and create a portfolio that fits your life.

We help each client understand their risk appetite and how it fits into their long-term outlook.  One of our key goals in constructing portfolios is reducing downside volatility.

As part of our process we use our proprietary volatility algorithm to give us indications of market turbulence and actively adjust clients' portfolios accordingly.  It is our intent that clients participate in less of the downside when times are bad. While there is no guarantee we will achieve these results, reducing downside volatility is beneficial, particularly to clients approaching retirement. 

Client portfolios are tailored to fit their specific risk tolerances, financial needs, and life goals.  Our portfolios range from all-weather portfolios designed, for example, for clients in retirement, to–at the risky end of the spectrum–aggressive, equity strategies with sector-specific overlays. Regardless of your place in life, Stone Bridge can design a portfolio that fits.

Typically, our portfolios are designed with two key features:

  1. Global diversification, accomplished by investing in multiple asset classes—US and international stocks, US and international bonds, real estate, real assets and commodities, etc.—and in multiple strategies. Most of you know this concept from the proverb “don’t put all your eggs in one basket.”
  2. Active management: typically, we actively manage client portfolios out of the belief that responding to global macroeconomic developments is critical. We monitor market conditions and look to actively reduce risk and/or take advantage of investment opportunities.

While we cannot guarantee the outcome, we believe these steps help create the foundation for long-term client satisfaction.

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