Traditional Financial Planning – With A Non-Traditional Edge

Traditional Financial Planning – With A Non-Traditional Edge

For decades, DeWitt Capital has always focused on the basics for our clients – we want to help you build your wealth, both before and after retirement. We don’t define wealth as just your retirement assets – we look across your income and all your assets, and we focus on the tried and true principles of portfolio management. For us, these principles are low correlations, consistency of returns, and accountability.

A History of Groundbreaking, Intellectual Research

How we achieve these is what sets us apart: From the genesis of our firm, we’ve always believed that looking outside trends – being where others aren’t – is the way to consistently create results for our clients. To do this, you need to make a commitment that goes beyond selecting stocks or bonds or mutual funds. The investing DNA of our firm is our intellectual commitment to a deep understanding of assets or processes that can provide benefits beyond a return stream that mirrors what the market is doing.

We began by investing in local companies, because the proximity gave us access to the kind of information – financial, competitors, markets, etc. – that enabled deep and thorough analysis. As we evolved as a firm, we were early to see the benefits of master limited partnerships and focused our research on how to best deliver these benefits to our clients.

Our Edge Today

We’ve looked at the last ten years and the historical bull market – and we see a market driven by a very few big names. Correlations have increased to the point that even traditionally non-correlated asset classes often move in tandem. We see volatility increasing, and a portfolio that is not effectively diversified may not be able to ride out storms. A further complication is that many investors hold concentrated stock positions, or positions with low cost basis, or want to take a specific view on investing. 

A Rules-Based Approach Focused on Consistent Outcomes

The solution is rules-based investing that uses data to identify behavior, relationships, and the correlation between assets and market instruments – whether at the fund level or the security level. Our process is a straightforward, repeatable set of rules to reallocate a portfolio periodically to reduce the subjectivity of choosing and sizing investments.

The differentiator – the edge – is that it isn’t a black box. It doesn’t pump out one strategy that gets added to other positions to fit into a portfolio. Our goal in creating the model was that it had to be completely customizable, so that clients can participate in the creation of their unique portfolio, feel connected to their portfolio with a deep understanding and comfort with how it is constructed.

A Focus on Risk, Not Return

Drawn and inspired from decades of award-winning literature, our approach to wealth creation and preservation is time-tested.The model begins with an analysis of historical volatility, and then looks for correlations. By maximizing diversification and minimizing volatility, the methodology can help balance overall portfolio risk, and potentially minimize drawdowns.

Specifically, we strive to achieve an asymetric return profile for our clients- without relying on timing the market. Think of an asymetric return profile like this: for every dollar the market goes up, we strive to capture 60% of the move. For every dollar the market is down, we strive to capture 40% of the move. If we can get even close to this, over time, your outcomes will be much better. The below graphic lays out a hyopthetical example.

Holistic Wealth Management – Enhanced with Technology

Our goal is to create a completely customized plan for each client, that will continue the process you’ve started in creating your wealth. By combining all aspects of your plan, and keeping the focus on risk, we build for your future.

We will give you a customized demonstation of our Edge