Investment Approach Overview
A Path to Sustainable Performance
Brentley Maddox Global’s insistence on adhering to a carefully planned approach to financial market investment is just one of the many contributing factors to the success we and our clients have enjoyed over the years. A carefully constructed path to sustainable performance with a strict risk management ethos ensures that gains do not come at the imperilment of precious, hard-earned capital.
The last decade has been characterized by low rates of return from assets and investment vehicles that had traditionally provided respectable, if not spectacular, growth for most ordinary savers if held for an extended period. Low interest rate policies implemented to help insulate over-indebted borrowers from the fallout from the global financial crisis proved to be a double-edged sword as savers found it nigh on impossible to generate decent returns on capital in bank deposits and other relatively safe asset classes.
This dynamic served to create a greater-than-ever need for professional investment advice among those who may have felt that such services and facilities were strictly the preserve of the super-rich. Our approach has been developed with this in mind and we pride ourselves on our ability to deliver the growth and security today’s investors need.
Investment Needs Guiding Principles
Despite the widespread use of algorithmic and high frequency trading in today’s financial markets, any investor without a clear set of guiding principles that dictate his or her decision-making increases the risk of suffering significant losses.
At Brentley Maddox Global, our primary aim is the preservation and enhancement of our clients’ wealth over the medium to long-term. We seek to realize this goal via the implementation of an investment philosophy centered on three important principles.
Ahead of the Curve
First, markets in general and specific investments in particular tend to be approached opportunistically. In a nutshell, this usually requires us to be ahead of the curve and it means that we must seek out a nascent trend that has yet to pique the interest of the broader market at large.
Secondly, we are adept at taking highly calculated, intelligent risks. This is heavily dependent upon on possessing an intimate understanding of features that represent true value based on what an asset is worth.
Lastly, we are process-driven. It is our belief that a clear set of disciplines improves decision-making, expedites active risk management and significantly improves consistency.
Everything begins with a team-driven assessment of the overall macroeconomic landscape. This is crucial in order to identify the primary sectors and to facilitate the determination of whether or not prospective sectors or assets therein are under or overpriced. Analyzing from the top-down in this fashion has broad implications for our own appraisal of the market and for matters of strategic asset allocation as well as industry concentrations and asset selection.
Once we’ve defined the investment framework, we continually monitor and reassess to make sure that we and, of course, our clients, remain on the projected path.
Ignoring the Herd
In investment, following the herd rarely culminates in out-performance.
At Brentley Maddox Global, instead of depending upon wholly external parties, we also produce our own proprietary research. We arrive at our own highly-informed opinions and we are not afraid to assume a staunchly contrarian stance in the market if our research supports it.
Our recommendations are rooted in premium quality in house research conducted by highly experienced professionals with decades of collective experience in making the calls that matter in the world’s financial markets. It would be foolhardy and arrogant to imagine that perspectives from alternative sources have no merit so we also commission research from highly-reputable research houses.
Analysis is Key
We rely on our research to identify assets, securities and companies that make a compelling argument for investment. Fundamental analysis endeavors to predict future price by poring through a business’s fundamentals. It gives a nod to macroeconomic analysis, detailed insight into the industry a company operates in, its revenues, earnings per share, debt servicing, tax liabilities and a host of other factors.
Analysis of this nature is aimed at supporting the notion that short-term perceptions of a company’s value are flawed and that, eventually, that value will correct itself - one way or another - to the up or the downside.
Market inefficiencies mean that gains can be made by acquiring a mispriced stock and waiting for the market to “realize” its mistake and re-price the stock accordingly.
Structured, Disciplined Approach
The route we take to dispensing our sage guidance is almost as important as the guidance itself. This is because having no roadmap to success can often mean that time and effort is wasted “spinning our wheels” while getting nowhere fast. For this reason, we take a structured, disciplined approach to information gathering because it is only by knowing our client as intimately as possible that we can properly assess the areas of their financial makeup that require attention.
The initial stage of the Brentley Maddox Global information gathering process is instigated with an introductory meeting or teleconference so as to establish what it is a client needs to accomplish and how our guidance might be of use. We assess their current standing, their desired outcome and the best way to get them there.
We have three “readiness goals” for this meeting: To establish the scope of the financial planning your situation demands; to list all of the information that you will need to provide for us to produce a plan and for us to make sure of your commitment to the planning process. By the end of this first meeting, we will know if we are a good fit for you and if you are a good fit for us.
The second stage shifts to you, where we depend on you to provide us with the detailed personal information required to personalize your plan. Naturally, a plan can only be as effective as the information its construction is based upon. To best expedite this, we have personal and proprietary data-gathering tools to help collect the information we need.
At the third stage, Brentley Maddox Global will:
- Draft an “existing standing analysis” detailing where you are now
- Review with you to ensure accuracy
- Review your financial objectives and determine tolerance to investment risk
- Prepare the final plan, describing each area analyzed and an action plan with prioritized steps to implement the changes we recommend
- Deliver the plan and answer any questions you have