Social Thread

SOCIAL THREAD is not bound to a specific investment approach but one that considers how time and situation affect the odds of achieving the risk adjusted returns. In adherence to our best of strategies philosophy, we evaluate each investment opportunity on its own merits. The result is an open architecture investment model, the use of both passive and active investment managers, the incorporation of alternative investment strategies when and where appropriate, and a continuous search for ways to improve the performance and effectiveness of our investments.

SOCIAL THREAD generally starts with a global asset allocation approach[1].  We provide continuous coverage of cash, debt, equity and alternative asset classes which we believe constitute a globally diversified portfolio. Using both quantitative and qualitative analysis we adapt allocations at least annually (more frequently if the advisor believes it is needed) to our in-house economic and capital market outlook. We pride ourselves on our whole systems investment thinking. Specifically, SOCIAL THREAD practices Total Economic Return (TER) approach to investing.

This means the integration of four separate but related aspects of portfolio creation and implementation:

1. Emotional and behavioral aspects; we recognize that any investment strategy created must fit within the investor’s unique set of values, risk tolerance, goals and personal wealth motivators.
2. Asset allocation, or the segmentation of your investments into multiple asset classes in an attempt to create a diversified portfolio that maximizes your expected return for a specific level of assumed risk (or, conversely, minimizes your assumed risk for a desired level of expected return);
3. Asset integrity, or the evaluation of the ethical and systemic economic implications owning a particular security in addition to the normal due diligence that comes with our responsibility; and
4. Asset location, or the placement of your investments into the appropriate estate planning and wealth transfer entities, in order to increase tax efficiency and meet dynastic wealth goals.

By integrating these four aspects of wealth management, we develop investment plans that work quantitatively and create an appropriate fit and level of comfort from the perspective of the investor.

[1] Global asset allocation: new methods and applications By Heinz Zimmermann, Wolfgang Drobetz, Peter Oertmann, 2003.