Managing investments is often the primary reason one hires a financial advisor. At New Capital, our investment experience is extensive, our academic training is from top institutions, and our professional certifications are recognized around the world. Most of all, though, we strive to guide you to a positive investment experience and help you better understand the sound principles and ideas that underpin modern investing.
Our Investment Approach
Our approach to investing is built on decades of academic and scientific research that has resulted in proven theories and accolades, including multiple Nobel Prizes, for their developers.
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.
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 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.
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.
Our Investment Process
Our investment process is a careful and reliable step-by-step sequence in which we patiently build a mutual understanding of your current portfolio and how it might best change to meet your needs and goals.
Relying on our financial planning work with you, we develop a risk capacity rating to determine how much risk you can reasonably afford to take in your portfolio.
We present the theoretical foundations of our investment approach so that you can get complete answers to your questions and concerns.
We use our proprietary portfolio selection grid to assign you to the most appropriate model portfolio given all the information that we have developed about you and your finances.
To complete our initial investment work, we create a custom investment policy statement (IPS) to document your investment plan and ensure mutual agreement to proceed with portfolio changes.