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Investment Process

Our approach as investment managers is to be growth-oriented and conservative. We seek to provide strong returns for our clients while protecting them from the worst gyrations of the market. We emphasize diversification and long-term perspective to avoid overexposing our clients to a single sector or company — no matter how great the appeal of the moment. We look across the whole market to find the opportunities that can generate good current or future investment returns.

The entire process is collaborative, and we only make investment purchases once we are sure that our client is comfortable with the recommended strategy. After the initial portfolio is constructed, we continually evaluate the results based upon your objectives. We meet and talk frequently to agree upon adjustments that are necessary as a result of changes in your needs, market conditions, taxes, or other factors.

Strategic Asset Allocation

Everything we do at Hudson Advisors begins and ends with our clients. We view each relationship as an active partnership that focuses our capabilities on your objectives. The relationship begins with the identification of your requirements and goals. We consider important issues such as current and future cash needs, time frames, multiple generations, inheritances and bequests, tax and estate planning, inflation, and tolerance for or aversion to risk. When necessary, we will consult with your attorney, your accountant, or other professional advisors.

All of the above factors will help us determine an appropriate strategic asset allocation profile which balances returns with the risk taken to generate the returns. The strategic asset allocation will be a general framework for your portfolio, and will determine allocation to various asset classes. At that point, we can proceed to the recommendation of specific investment instruments. Each portfolio is customized to meet the client’s investment objective and risk tolerance. Our current clients have a broad range of investment goals and risk tolerances. Some clients seek current income and immediate liquidity while others have a time horizon of more than 15 years and seek aggressive growth.

Equities

Stocks – We promote a disciplined approach to investing and recommends that you:
  • Focus on quality; quality stocks hold value better in down markets.
  • Diversify the portfolio though an implemented strategic asset allocation.
  • Systematically invest over the long-term (average into the market) and reinvest the dividends or interst into the same or other investments.

Fixed Income

For each client, we develop a fixed income strategy based on his or her tax situation and liquidity preferences and construct a portfolio which is focused on returns available from U.S. Government Bonds, Taxable and tax-exempt municipal bonds, and corporate bonds. We generally emphasize short or intermediate versus longer-term maturities based upon our view that the interest rate differential seldom justifies the risks inherent in the longer time horizons. We also prefer higher quality securities for most portfolios but will purchase high yield funds where necessary and desirable.

Alternative Investments

Where appropriate for our clients, we will suggest an allocation to hedge funds and private equity and help them to identify managers in those areas. We source alternative investments directly and through “fund of funds”. We have funds that we have analyzed and can use for our clients. Our custody arrangements through JP Morgan and Fidelity Investments allows us to secure a broad range of other investment vehicles that include venture capital investments, hedge funds, limited partnerships, and real estate investments. We do not discourage clients from diversifying their portfolios, but we prefer to monitor those investments on a non-supervised basis.