The primary goal of asset allocation at Highmount is the preservation and growth of our clients’ wealth.We focus on protecting portfolios through diversification across asset classes, which we believe will enhance performance and mitigate volatility.
Highmount balances quantitative and qualitative analysis in making asset allocation decisions.
The investment team meets weekly to review the state of the world – economically, politically and socially – with a focus on critical issues that are likely to determine the performance of financial markets over the next one to three years. Highmount advisors think about how major world events affect their clients’ portfolios, what opportunities and risks that emerge as a result of these events. Essentially, the firm manages assets by analyzing repercussions from events on the front page of the newspaper, rather than the business page.
While it occasionally seeks to capitalize on temporary opportunities created by market dislocations, Highmount in general has a long-term orientation to asset allocation. The firm favors investments that have multiyear staying power. With a long-term approach, the firm has the ability to wait and seize an opportunity at the most advantageous time.
Quantitatively, the investment team assesses the global economic environment on a continuing basis to determine long-term strategic and short-term tactical allocations. The team develops projected return and risk profiles for an array of asset classes, and uses these projections as the framework for customizing asset allocation solutions for clients.