Investment Strategies

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

We’ll shape your portfolio to maximize opportunities, based on your priorities for risk and return

Making stocks, bonds, cash, and alternative investments work to greatest advantage requires a disciplined yet opportunity-rich plan, intelligently diversified to reduce risk. It begins with an investment framework shaped to your unique goals and risk tolerance.

Risk can mean a variety of things – absolute loss, volatility, the possibility that you will run out of money, or the potential for greater reward. Risk can also mean different things to different people. We seek to understand how you view risk so that we can construct a portfolio appropriate for your particular situation.

Waypoint manages risk in several ways – through diversification and manager selection with a quality bias. The overall result is a higher potential for building wealth. Because clients have varying risk appetites, we identify a range of investments that allow us to construct client-specific investment portfolios for those with very high risk tolerance as well as those with little risk tolerance.

Managing risk doesn't mean avoiding risk

Central to every decision in our investment process is a healthy appreciation of the positive and negative aspects of risk. The key to success is knowing when the trade-off of risk for return is prudent and when it is not, how to combine risk exposures for optimal performance and, importantly, recognizing the danger of losing more than the market when the market declines.

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

In constructing investment portfolios, we draw from a broad range of 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 the investments to ensure client portfolios are optimally structured.

  • Our proprietary screening process involves twenty-four variables based on quantitative and qualitative data.
  • We have the freedom to select any manager or investment that best meets client needs, which avoids fee-sharing conflicts of interest.
  • We utilize a mix of managers with expertise in various sectors and investment styles.
  • We know our selected portfolio manager teams and their strategies.
  • We conduct regular on-site visits in the selection and monitoring of managers.

Have patience – don’t follow the herd

  • You may hear that the average active manager underperforms the benchmark. This may be true, but Waypoint does not pick average active managers.
  • Managers that are like the benchmark cannot beat the benchmark after fees.
  • We seek managers with high active share – meaning they are different from the benchmark. These managers are most likely to beat the benchmark.
  • Research reveals that even the best managers over the long term (10 years) are likely to have 3 consecutive years of underperformance relative to their benchmark.
  • The worst thing investors do is chase the recent returns of outperforming managers.

Proactive management nets rewards

  • We actively rebalance portfolios to targeted weights – maintaining the discipline of selling high and buying low.
  • We tend to avoid trying to time the market, which can be difficult especially during times when investor emotions trump fundamental analysis. However, there are times when we take advantage of opportunities resulting from extreme market conditions.