Diversification of assets is at the heart of modern portfolio management, and moreover is a legal requirement of a fiduciary advisor. New Capital’s global portfolios are diversified by geography, industry, security type, issuer size, and additional important characteristics.
Scientific and academic data researchers, especially those affiliated with our business partner Dimensional, have determined with statistical evidence that certain “factors” - company size, low market price to book value, high profitability - have persistently outperformed the general market. New Capital incorporates these factors into our portfolios.
Passive (Index) Funds
Modern academic and scientific research is conclusive that market pricing for assets is efficient, and it is therefore exceedingly difficult, especially net of manager fees, to outperform market returns. Accordingly, New Capital’s portfolios make extensive use of passive mutual funds (also known as “index funds”).
New Capital generates detailed internal and client reports using our Morningstar analytics system to understand how our portfolios perform against appropriate benchmarks. We use this approach to constantly fine tune our clients’ model and custom portfolios.
Concentrated Custom Holdings
New Capital has extensive experience helping clients diversify, hedge, or preserve concentrated holdings, including low cost basis/highly appreciated holdings where tax consequences are substantial. We are also adept at building diversified portfolio around custom holdings that you value and wish to retain.
Environmental, Social & Governance investments attempt to align investor values with portfolios. From the beginning New Capital has provided ESG portfolios to clients who want them, and we continue to expand our research and offerings in this area of growing interest.
Our eight model portfolios deliver efficiency and oversight for our clients and range from Conservative (25% stocks/75% bonds) to Aggressive (95% stocks/5% bonds). We implement, monitor, and trade our models using sophisticated rebalancing software provided to us by Morningstar.
Most of our clients are taxable investors, and we make great effort to deliver tax efficiency in our clients’ portfolio using techniques like asset location, specific lot sale accounting, tax loss harvesting, deferred gains, and more.
Whether you own closely held businesses or invest in private equity, New Capital has experience and skills in helping you analyze and maintain these important holdings in the contact of your entire portfolio.
Real estate, whether it is residential, vacation, commercial, farm and ranch, or private equity, plays a role in almost every portfolio. We take full account of your real estate assets, goals, and timing, and help you optimize your decision making for them.