Portfolio Management

Portfolio management is a Science - utilizing risk/reward metrics, asset allocation percentages, market data and the like.

Yet it is also an Art - incorporating a client's unique needs and their most cherished values. Thus, Fig Tree Capital constructs each portfolio with the following philosophy:

Part 1: Investment Process

We utilize a CORE/SATELLITE investment philosophy:

I. What is "Core?" It is a diversified allocation that comprises the bulk of your portfolio, from 50% to 100%. Core is diversified along these lines:

Assets

We diversify across domestic stocks, international stocks, ETF's, bonds & commodities when necessary.

Sectors

We diversify assets across a variety of sectors and will overweight sectors as suitable for the client.

Company Size

Large "cap" companies like Apple and Amazon get all the attention, but small "caps" also hold promise.

Concept of a money tree made of real money

Studies show that up to 90% of a portfolio return depends on its asset allocation.

Thus, designing a suitable asset allocation for each client is essential. We have 3 main 'themes' behind our Core strategies:

Broad Market Core: This is a traditional, asset allocation portfolio across stocks & bonds, large cap to small cap, US to International. This is a standard feature across all investment advisory firms. But we also include a...
Clean Energy Core: please see the next page.
Innovation Core: This is an investment in the future and thus, it tends to be riskier with a higher potential for reward. This strategy features a diversified basket of blue-chips like Google and Caterpillar as well as cutting-edge young companies you've never heard of.

Some of our innovative themes include:

Robotics

Love it or hate it, AI is coming. The nature of work may forever change.

Genomics

Genomics and tele-health may revolutionize medicine.

Bitcoin

A small exposure (2% - 5%) may fit some clients - let's hope it gets greener soon.

II. OK, we've explained our 'Core' strategy, but what is a "Satellite?"

This is another means by which to customize a client's account. We can attach a small tactical basket(s) of equities to target specific client goals. We can attach Growth (G) strategies or Aggressive (A) strategies. We can emphasize Quality (Q) stocks or high-yielding (Y) investments. The list goes on, depending on client objectives and, as always, their set of values.

Part 2: Investment Preparation

The Power of a Plan

Many firms determine your portfolio via questionnaire. It’s quick and easy. But a financial plan can better ascertain your optimal asset allocation. See the Financial Planning page for more details.

The Power of an IPS

IPS stands for Investment Policy Statement. This 1-page document establishes the parameters for risk, time horizon, objectives as well as tax constraints, fees, trading frequency, and more.

The Power of You

Your voice matters, and so does your money. Invest in your values and, in tandem with millions of other investors, help create the world you cherish. Share your values with us and we will put them into action.

Part 3: Investment Priorities

Customization

Your values matter to you. In that spirit, we can build customized portfolios that align with your values.

Transparency

Fig Tree Capital is the rare firm to offer an up-close look at our investment strategy. Contact us to find out what sets us apart.

Low Fees

Don’t let fees take a bite our of your portfolio. Fig Tree Capital lays out clear advisory fees, nothing hidden and with no commissions.

Portfolio Management