Our approach to investment
Hamilton Rose has considerable insight to investment markets and the various methods of management available. We are not investment managers, so place our emphasis on researching the various styles of investment management groups to identify those which we believe are most suited to current market conditions and the “style” that we believe holds out the best prospects of return.
Today, private investors are faced with an overwhelming choice of options. We believe in active management – that the manager’s job is to seek outperformance through skill and special insight.
Our philosophy is that active management is the best way to secure returns, but to do so with a close eye on risk management.
At the heart of this is our experience of building your financial plan and identifying your attitude to risk. Generally, we find most clients wish to preserve capital where possible and believe that stock markets are inherently risky as a result of short term and often extreme volatility.
We believe the best way to achieve your goals is through multi asset investing with an absolute return target; that is judging returns as outperformance above cash, whilst seeking to ensure exposure to market downturns (losses) is limited.
Moreover, we believe that investment managers should be free to choose from the widest possible pool of investment opportunities – not just equities listed on main markets and gilts but also commodities, high growth stocks such as AIM securities, investment in smaller companies and emerging markets, and also in capturing the higher returns offered by absolute return funds and directly held corporate bonds.
Having settled on this “house style”, Hamilton Rose took the decision that, rather than pick funds suitable for this style, we should recognise the limits of our expertise. We are financial planners not investment managers.
Consequently we outsource the day to day investment decisions of asset allocation, interpreting capital markets and adjusting asset allocations tactically as a result, choosing the assets that provide growth and those that provide capital protection and so on.
We believe our clients warmly receive our strategy of accessing the intellectual capital of other professionals to provide an investment service that seeks to deliver the growth expectations agreed upon in financial plans and in a way that recognises the value of capital protection.