Clearwater employs a rigorous fundamental, active, and historically-informed management approach aimed to provide superior risk appropriate portfolios for clients.
Strategic asset allocation is implemented through evidence-based statistics, valuation awareness, and historically informed, active investment management. Clearwater believes this process offers the best means of realizing client goals and objectives by exploiting the full investment cycle. Portfolios are customized to address each client’s psychological and financial ability to accept risk.
Clearwater is fee only and independent. Fee only means--no commissions. Independent means--we do not sell a parent company fund investment suite or have third party revenue sharing agreements. We aim only to generate good returns.
The firm's investment philosophy and process is intensely focused on risk management, seeking to protect client capital during periods of market decline while providing attractive returns during positive market environments.
Each individual has unique investment needs. ClearWater uses independent research, technology and innovation to help individual investors with their financial goals, now and in the future.
Objectivity – We are fee-based and independent. Our only incentive is to generate good results.
Diversification – We believe in diversification to reduce asset class risk but we also believe in selectively exploiting asset class opportunities.
Discipline – Our discipline is based on rational decision rules and fundamental analysis. This mitigates sloppy decision making and emotionally based decision errors.
All-Star Approach – Exceptionally in-depth research gives us access to highly skilled managers.
Quality of Service – We tailor an investment plan to your needs.
Access to intensive research and a disciplined process are critical to long-term investment success.
Global diversification expands our opportunity set.
A long-term approach allows us to take advantage of mis-priced investments.
Using mutual funds allows us to access some of the world’s premier investment minds. No one organization has a monopoly on investment talent.
Investment portfolios should be customized to meet the objectives of each client.
It’s a starting point for our portfolio allocations
It provides a sensible long-term target allocation absent of “fat-pitch” opportunities.
It offers a constant frame of reference against which to measure the impact of our tactical decisions
It ensures a consistent discipline in decision-making
“Fat-Pitch” Opportunity — An extreme undervaluation (or overvaluation) relative to alternative asset classes.
Many Asset Class Options — Asset classes not included in the strategic allocations are considered as are style and market cap opportunities.
Analysis — Identifying fat-pitches requires in-depth analysis of fundamentals and valuations.
Patience — Requires waiting for fat-pitch opportunities and not swinging at bad pitches.
Adding Value — High odds of being right over a market cycle.
Threshold for Loss -- Each portfolio has a one-year loss threshold.
Periodic Use of Risk Scenarios -- Different risk scenarios are identified and used to assess the potential impact on each holding as well as the portfolio as a whole. If risk is in excess of the threshold, the portfolio is adjusted.
No guarantees -- No guarantee that risk thresholds can be avoided
Strategies customized to meet each client’s goals and objectives (Investment Policy Statement)
Monthly brokerage reports
Quarterly performance reports and portfolio appraisals
Quarterly client letter discussing outlook and strategy
Clearwater is a Greater Princeton Regional Financial Advsiory