Our Approach

We believe that the markets are intertwined and often correlated due to the interconnected nature of today’s investment landscape. Therefore, we weigh equally the importance of interest rates, global economic fundamentals, specific valuation metrics, and other factors to determine our top-down allocation to the markets. Furthermore, we then drill down within each of these variables to their respective components to ensure that each aspect of this analysis is consistent with our broader investment thesis. We believe that this approach allows for a better understanding of the catalysts behind market movements over a short, intermediate, or long term time horizon.

One of the strengths of the YieldQuest style is that our approach cannot be pigeon holed as fundamental, technical, value, or growth biased. Rather, our strength comes from the flexibility that is inherent in a contrarian style. Typically, we work in market areas that we believe to be under-researched, misunderstood, or where certain "technical" factors such as a lack of institutional participation may allow us to capture "inefficiencies" that might be created over time.

A perfect example of these inefficiencies occurs in the exchange traded fund area. Because ETF purchases and sales are sometimes made by individual investors, many of whom don’t understand fully what they are buying or selling, they may sell these funds at a deep discount (perhaps as a way to generate a short or long term capital loss in an underperforming asset class). This effectively allows YieldQuest to buy these securities “on sale,” leading to potential out-performance over time. Similarly, other investors at some later date may be willing to pay a “premium” for those same securities (perhaps because the asset class is popular or the dividend yield is very attractive in a falling interest rate environment), thereby offering YieldQuest a window of opportunity to potentially realize an attractive return from the sale of the same fund purchased at a discount many weeks or months earlier.

We utilize this “premium/discount” model across all of our asset and sub-asset classes, not just exchange traded funds, buying securities when we believe the expected return is under-appreciated and selling these securities when the expected return has dropped to fairly valued or unattractive levels.

Using this approach to investing, we seek to implement our fixed-income and equity strategies in a way that, within the specific parameters of the client, allows for a favorable risk/return profile as compared to an appropriate benchmark.

We look forward to showing you the particulars of our strategies in person, as you explore a potential relationship with us.