RISK-BASED INVESTMENT MANAGEMENT
Valentine Ventures lives by one simple rule: Don’t take on more risk than you need to.
Risk and reward. Greed and fear. The duality of financial markets, as well as human emotions, can drive investors to misjudge and misappropriate their investment portfolios. We aim to provide a guiding light to investors of all sizes, helping you achieve financial independence while avoiding the kind of risk that might permanently damage your financial future.
RISK MANAGEMENT
The Valentine Ventures investment process is rooted in risk management. We begin with analyzing your most appropriate Asset Allocation, or value of growth securities vs. bond holdings. Our modeling software analyzes your optimal portfolio allocation while assuming the least amount of risk necessary to achieve your objectives, given the constraints specific to your personal situation.
Within the investment portfolio, risk is reduced through broad allocations to low-correlating investment classes. We invest across at least eight different asset classes, which in effect smoothes return and reduces the effects of negative performance of any one class. Portfolio holdings are rebalanced periodically to enhance return and reduce risk. Our proprietary portfolio structure includes the following asset classes:
- U.S. Stocks
- Foreign Stocks
- U.S. Bonds
- Foreign Bonds
- Real Estate
- Commodities
- Volatility
- Other Alternative Classes
Within each asset class, investments are diversified across many securities.
PORTFOLIO CONSTRUCTION
For over a decade, Valentine Ventures has utilized low-cost and liquid Exchange Traded Funds (ETFs) to provide exposure to worldwide growth markets. Forgoing more costly mutual funds, Valentine Ventures is on the vanguard of portfolio managers using ETFs.
For asset protection and income production, Valentine Ventures structures a broad bond portfolio based on high-quality individual bonds and similar instruments. We target risk at several levels of the risk spectrum…bonds are "laddered" by maturity to reduce "interest rate risk," inflation-protection bonds are used to hedge against "inflation risk," and only top-rated bonds are used to reduce "credit risk." (Smaller accounts will use bond ETFs in place of individual bonds due to the constraints of constructing a ladder with insufficient funds.)
The investment portfolio's overall sensitivity to changes in the market, or Beta, is controlled so as to reduce exposure to risky assets once a protracted decline has been identified, as measured by proprietary technical analysis.
