Investment Strategies

Over the years, the Waypoint team has created and refined an identification and evaluation process that ensures consistency in the quality and performance of your investments. Our objective is to build and preserve your wealth.

We will shape your portfolio to maximize opportunities, based on your priorities and comfort level with risk

Making stocks, bonds, alternative investments and cash work together to their greatest advantage requires a disciplined yet opportunity-rich plan, intelligently diversified to take advantage of market appreciation while reducing market risk. The plan begins with a framework shaped to reflect your unique goals, balancing your desire for a high return with your aversion to losing money when market calamities occur.  

Risk can mean different things to different people – absolute loss, volatility, or the possibility that you will run out of money if your portfolio doesn’t grow enough to support your future needs and desires. Some investors willingly take on risk for the possibility of higher reward. We seek to understand how you view risk so that we can construct a portfolio appropriate for your particular situation. We manage risk through diversification and careful manager selection, focusing on quality. We maintain and make adjustments as there are opportunities or dangers in the markets. The overall result is a higher potential for building wealth.

Managing risk to create greater wealth

Central to every decision in our investment process is a healthy appreciation of the positive and negative aspects of risk, some of which are discussed in the sidebar to the left. The key to success is knowing when the trade-off of risk for return is prudent and when it is not. It is critical to understand how to accept a reasonable amount of risk for optimal performance as well as recognize the danger that with too much risk your portfolio may not be able to recover from a significant decline. 

Selecting and monitoring the best money managers – it’s all about the people

In constructing your investment portfolios, we draw from a broad range of diversified asset classes managed by the most accomplished talent available. From traditional equities and bonds to alternative strategies including private equity and hedge funds, our research staff constantly monitors your investments to ensure that your portfolios are optimally structured. 

  • We have the freedom to select any manager or investment strategy that best meets your needs without conflicts of interest.
  • Our proprietary screening process involves a twenty-four-point manager evaluation based on quantitative and qualitative data.
  • We utilize a mix of managers who differ in their investment strategies and expertise.
  • We get to know the principals and support staff of our approved money management firms. 
  • We conduct regular on-site visits and monitor the managers in your portfolios diligently, making sure they adhere to their investment strategies.

Have patience – don’t follow the herd

  • You may hear that the average active manager underperforms the benchmark. While this may be true, Waypoint Advisors does not pick average active managers.
  • Managers that are like their benchmarks cannot beat the benchmarks after fees. 
  • We seek managers who are independent thinkers, sometimes even contrarian, and often different from their benchmarks. 
  • Research shows that the best managers who outperform their benchmarks over the long term (10 years), often have as many as three consecutive years of underperformance before pulling away from their peers. 
  • Do-it-yourself and passive investors often avoid great managers who are currently underperforming to chase the recent higher returns of lesser quality managers, only to experience the full brunt of a downturn when there is a major market correction. 

Proactive management nets rewards

  • We actively rebalance portfolios to targeted weights – maintaining the discipline of selling high and buying low.
  • Market timing can be risky. We prefer investment strategies based on solid fundamentals. However, there are times when we take advantage of opportunities resulting from extreme market conditions.