SERVICES
Investment Management
Successful investment management starts with discipline. It is the cornerstone of your financial future. We manage your assets as if they were our own. We work to achieve our client’s goals through appropriate growth and income but also have a finite focus on risk and the competing forces that can impact a portfolio over time. Through extensive research, tactical allocation, and focused risk modeling and management, our portfolios help clients stick with their plans and achieve their long-term goals.
- Custom Portfolios
- Science, Not Guesswork
- Expertise Matters
- Discipline and Flexibility
- Long-Term Focus
- Limited Taxes
Expertise Matters
Financial advisors have widely different levels of expertise. We believe clients who entrust their wealth to an advisor deserve to work with highly credentialed experts.
Financial Planning
Customized Planning
- Create customized investment portfolios
- Help minimize tax liabilities inside and outside of client portfolios
- Advise clients on estate planning with the assistance of our expert partners
- Advise on tax-efficient, impactful philanthropic strategies.
- Analyze existing risk mitigation and insurance strategies.
- Review existing debt and liability structures to determine if better options can be utilized.
Advice that Serves You
Seeing the Big Picture
Our Process
OUR UNIQUE APPROACH TO THE MARKETS
At Blue Marlin Advisors we apply a so called ‘top-down’ approach the markets and portfolio management. Such an approach understands and respects the fact that the dog wags the tail and not the other way around. More succinctly as it relates to markets, a top-down philosophy to markets dictates that it is more important to be allocated to the right asset class or sector or group of stocks, rather than trying to pick single stocks regardless of how their respective sector is performing. For example; most stocks in the industrial sector will go up if the sector is rallying. Thus, getting the direction of the sector right is of paramount importance for without this one is fighting a trend.
We constantly monitor trends and trend changes of asset classes (stocks, bonds, commodities, currencies) as well as sectors and groups of stocks in multiple durations. Based on those movements we then hone in on single stocks or ETFs that fit the broader trends of their respective sectors. Such an approach allows us to allocate money in a proactive but not a hyperactive fashion. The stock market is highly correlated. Correlation is even higher within sectors and groups of stocks. Thus it is imperative to notice which sectors/groups are about to move and less so which individual stocks.
Strategies and Risk Management
HOW BMA MANAGES RISK
While we embrace a healthy level of risk taking, we feel a comprehensive risk management plan is essential to successfully managing assets through all types of market conditions. BMA has developed a system of sector/group and asset class analysis and overall market indicators to use as a guide to shift assets when necessary to minimize risk while taking advantage of the sectors in the market that offer the greatest risk-adjusted return. We utilize a systematic review of the overall market and various other factors by the BMA investment team. We review our overall portfolio weekly/quarterly and make necessary adjustments when necessary. Our primary objective is to be out of sectors that pose the greatest risk to your portfolio. We alter the portfolio’s weighted allocation based on our thorough analysis. We make these changes only when necessary and take into consideration the tax implications of portfolio adjustments.
For new investments added to a client’s portfolio, we factor in the client’s risk tolerance, tax situations, and how new investments will enhance the portfolio performance without increasing the portfolio’s risk beyond the added value.
The BMA tactical allocation model, i.e. the Blue Strategy combines the best of both worlds; longer term capital appreciation with plenty of upside potential, while minimizing portfolio drawdowns.
This strategy is what we like to call the ‘modern’ and much more appropriate portfolio strategy for today’s market, which replaces the outdated 60/40 model.
At its core, Blue Strategy takes advantage of the longer-term strongly bullish bias of US equity markets (on average over time the S&P 500 increase 9.50% per annum), plus a healthy allocation to US government bonds (rates), commodity baskets, and gold.
It has long been known that portfolio diversification mitigates risk and volatility. This ‘anytime’ portfolio is built to maximize diversification using a variety of asset classes.
The diversification benefit is borne of the inherent uncorrelation of these assets, e.g. when stocks go down, bonds tend to go up. This conveniently obviates the need for any attempt at or anxiety over market timing or guesswork.
Blue Strategy Higlights
- True diversification
- Built to work in all four economic environments:
- Inflation
- Deflation
- Rising economic growth
- Declining economic growth
- Low cost
Using options credit spreads to generate income by selling credit spreads to enhance overall portfolio returns and add diversification. We manage a portfolio of options utilizing highly liquid vehicles that offer high probability of success while maintaining a strict risk management.
We utilize our proprietary approach and tools to identify best candidates for new trades and to manage ongoing positions
EOI HIGHLIGHTS
- Use of option credit spreads to generate income
- Back tested to optimize best possible results
- Uses options on highly liquid indexes, etf’s and stocks
- Utilize years of experience in trading options with an income oriented approach
- Clearly defined strategy for entry and exits
Sector/group/asset class rotation is based on how institutional money continuously rotates from sector to sector, group to group or asset class to asset class. Money is constantly looking to find the best risk-adjusted opportunities. Institutional money flow is what really moves the markets. As institutions move money from one sector to another, a bid and thus momentum starts to pick up behind most stocks in that sector.
Tactical Asset Allocation thus identifies high probability ‘trades’ that reside in the strongest sectors/industry groups or asset classes. Our algorithm continuously monitors and ranks 60 industry sectors, and then “follows the money” by identifying the strongest stocks within the strongest sectors.
The Tactical Asset Allocation strategy identifies high probability, bullish directional trades on stocks that reside in 60 major industry sectors. The strategy’s foundation is based on the fact that institutional money continuously rotates from sector to sector.
Our algorithms continuously monitor and rank the 60 industry sectors, and then “follows the money” by identifying the strongest stocks within the strongest sectors.
The BMA conservative model is a fixed income oriented approach. The strategy invests across a wide spectrum of fixed income instruments ranging from US Treasuries of different maturities to highly rated corporate bonds, and Treasury inflation protected securities (TIPS).
Based on a client’s risk tolerance and goals, this strategy can be added to the Blue strategy.
Clients looking for more risk-adjusted exposure into value, growth, international or specialty areas.
Subscription model, i.e. retainer based options
Asset classes:
- Equities
- Fixed Income
- Currencies
- Commodities
- Real Estate
- Smart-beta strategies
Contact us – hello@bluemarlinadvisor.com to discuss how we can help tailor a solution that meets your needs.
