Palladium provides investment management and a high level of personal service for those with $500,000 or more in investable assets. Investment portfolios are tailor made to clients’ unique circumstances, and are managed on a continuous basis. Financial forecasting, setting of goals and objectives, asset allocation, and security selection are the foundations of the work provided.
Through a series of preliminary discussions with a new client, the portfolio managers help establish the appropriate investment guidelines for the management of the account. The portfolio management process follows the road map created at the outset of the relationship with financial reviews. Clients receive quarterly reports of their investment accounts which include investment performance, an asset allocation summary, and an appraisal of holdings. An opinion editorial illustrating the firm’s perspective on current issues is provided quarterly.
• Economic and market research contribute to an asset allocation model used as the foundation for client investments. Multiple strategies are available to suit individual risk tolerances and preferences. Investment analysis is performed across a broad spectrum of investments: stocks, bonds, real estate, hedge funds, mutual funds and exchange traded funds.
• Intellectual property includes various proprietary research, asset allocation and investment selection models, as well as development and uses of technological solutions.
• Dedicated teams provide depth and prompt attention to client needs. Each client is assigned a primary and secondary Portfolio Manager in addition to a Customer Service Associate.
Arguably the most critical investment decision, asset allocation broadly refers to the mixture of cash, bonds, and stocks within a portfolio. Where appropriate, other less liquid asset classes may be considered, including real estate, hedge funds, private equity, commodities, and managed futures.
The investment process at Palladium includes an ongoing analysis of the relative risk and reward between asset classes. This analysis is based primarily on macroeconomic factors such as corporate earnings, interest rates, inflation, and the projected outlook for each, as well as that of the economy as whole, both domestic and global. This assessment is then applied to the individual objectives of each portfolio to determine the optimal mixture.
Equity Investment Strategies
Our equity selection process focuses on stocks that are high quality, diversified, and attractively valued according to our proprietary methodology. Implementation involves the purchase of individual stocks and/or the use of Exchange Traded Funds, with diversification addressed across sectors, both domestically and internationally. The result is a portfolio that is transparent and efficient with respect to tax and investment cost considerations.
Palladium’s proprietary method for security selection examines the potential return of a given company’s stock, along with the risks of underperformance and excessive volatility. Our disciplined process produces a portfolio of stocks with characteristics similar to the S&P 500 Index with respect to industry diversification and market capitalization, though often with superior underlying fundamentals. The application of this equity selection process is then tailored to each individual client based on their particular investment objectives, aversion to risk, and tax sensitivity.
Fixed Income Strategies
Palladium employs a fixed-income strategy focused on high credit quality and preservation of capital. Bonds are purchased individually and are then held to maturity, thereby maximizing control and preserving principal. The average maturity of this diversified collection of bonds is determined by our outlook for interest rates and inflation as well as the current rates of interest available on short-term bonds (1-3 years), intermediate-term bonds (3-7 years), and longer-term bonds (7-12 years). Bonds with maturities longer than twelve years are rarely employed and typically those with a rating of single-A or better are considered. In addition to our own research, as well as that of the credit rating agencies, we utilize independent, third-party research to help identify both risks and value. The type of bond held depends on the effective tax rate of each account, and may include either government, corporate or municipal bonds..