Asset Management
Our goal is to implement and maintain an efficiently managed investment portfolio at the lowest possible cost and with the least amount of risk that is required to achieve YOUR financial goals. MFG relies on four pillars to build your optimal portfolio.
Active Risk Management
We vary risk exposure in proportion to the prospective compensation for that risk. Our proprietary model frames our decision-making process in terms of the amount of risk to hold in your portfolio given the current level of risk in the financial markets. Growth of capital can only be made safely when the opportunity is available and not just because it happens to be desired now.
Diversification of Strategies
MFG has a number of investment strategies, Preservation of Capital, Income, and Growth
I. Diversified Portfolio
- Long-term asset allocation
- Maximize return given a desired risk level
- Combine risky assets that are not perfectly correlated to reduce overall portfolio volatility
II. Risk Managed Portfolio
- MFG Market Risk Model
- Preserve, protect and grow assets when it is most prudent to do so
- What is most likely to happen
III. Trend Following Portfolio
- Price trends exist across asset classes due to long-standing behavioral biases
- Positive long-term absolute performance
- Low correlation to major asset classes
Diversification of Assets
We use Modern Portfolio Theory (MPT) to create a sensible, long-term asset allocation portfolio focusing on minimizing volatility to avoid large draw downs. Historically diversification across asset classes has shown ot reduce portfolio volatility without sacrificing long term gains. We construct our diversified portfolio using the following financial assets:
- Exchange Traded Funds (ETF)
- Mutual Funds