Investing Strategies
1. Diversified Strategy
Objective: Design and maintain diversified investment portfolios aligned with each client’s overall 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), but we will also use equities, fixed-income securities, and other 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. A key difference between the Diversified Strategy and the Absolute Return Strategy is that the latter uses valuation as a cornerstone when making investment and diversification decisions. 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. Clients in this strategy may also utilize Sorfis to manage all or a substantial portion of their investable assets, or just a portion of their assets that they’d like managed using valuation as a tool in making portfolio decisions. Clients should also be willing to accept a higher level of volatility during times when we believe opportunities call for having larger position sizes in select equities or equity ETFs.
Securities Types: Primarily equities and equity ETFs, but we will also use fixed-income securities and other asset classes on occasion. This strategy will also hold cash and Treasury Bills when we cannot find places to allocate capital that meet 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 own 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 strategy customized to those specific circumstances.
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 that 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.