Investing Strategies
1. Diversified Strategy
Objective: Design and maintain diversified investment portfolios aligned with each client’s financial plan. This strategy does not aim to outperform specific market indices. Instead, it looks to gain market exposure based on client circumstances and will adjust how it achieves that exposure based on various economic and market considerations. Portfolios will be managed for tax efficiency.
Suitable For: Clients that utilize Sorfis to manage all or a substantial portion of their investable assets—and thus seek to diversify widely, manage taxes, and have someone to manage their financial plan and answer any financial questions they have over time.
Securities Types: Primarily Exchange Traded Funds (ETFs), equities, and Treasury Bills. We may also use other fixed-income securities and asset classes on occasion.
Level of Concentration: Wide diversification.
Risk Management: Wide diversification and rebalancing.
Annual Fee: 0.75% on the first $10 million in assets. 0.50% on assets over $10 million.
2. Absolute Return Strategy
Objective: Create a portfolio that either outperforms the S&P 500 over the long run or matches the S&P 500 with lower risk. At times, this strategy may be significantly concentrated in its best ideas.
Suitable For: Clients that want to emphasize valuation and value investing in their portfolios and are willing to accept a higher level of volatility when we believe opportunities call for larger position sizes in select equities or equity ETFs.
Securities Types: Primarily equities, with occasional allocations to equity ETFs. We may also use fixed-income securities and other asset classes. This strategy will hold cash and Treasury Bills when we cannot find places to allocate capital that meets the strategy’s criteria.
Level of Concentration: Varying level of diversification, depending on the opportunity set.
Risk Management: Diversification and valuation. The Portfolio Manager at Sorfis also uses this strategy to invest the majority of his capital in aligning his interests with those clients in this strategy.
Annual Fee: 0.75% on the first $10 million in assets. 0.50% on assets over $10 million.
Customized Strategies
For clients with specific needs or goals, we can also create a customized strategy for those circumstances.
Non-Discretionary Accounts
This is for clients who want us to gain their permission before executing a transaction or handling transactions for clients who want to make the buy and sell decisions in their accounts. We may consult with and make recommendations to clients as to when and which securities are to be bought or sold for the account, the total amount of the securities to be bought or sold, and/or the price per share. Still, the course of action must be confirmed by the client before we proceed with taking action on the account.
It is very important to note that because we also manage discretionary accounts, should we decide to buy or sell a security for discretionary accounts, we will likely do so before consulting with or making any recommendations to clients with non-discretionary accounts.
Annual Fee: 0.75% on the first $10 million in assets. 0.50% on assets over $10 million.
Financial & Retirement Planning
We create and maintain effective financial plans based on our client’s goals, risk tolerance, and tax situation. This financial planning is an added service for investment management clients who want or need this service and not something that we charge for separately.
For more detail on our firm and our strategies, see our Form ADV Part 2A.