Portfolio Management — A Portola Creek Service
A San Francisco and Santa Barbara Registered Investment Advisor.
Using a comprehensive approach to wealth management, Portola Creek will construct a customized portfolio for you based on your total balance sheet, overall financial objectives, risk tolerance, and more importantly, the Environmental, Social, and Governance issues that matter to you most.
How does Portola Creek Construct Individual Portfolios?
Our investment approach starts with a macro view of the global economy. The global financial markets possess varying levels of geopolitical risk, so a country’s Governance score really matters. A few of the contributing micro-factors for any country are inflation, interest rates, and GDP growth.
From here, we identify the most attractive countries and sectors to include in our portfolios, before selecting individual securities to own. Technology allows us to digest dozens of important statistics like earnings momentum, changes in analyst recommendations, return on investment, insider buying and selling, and volatility to name just a few. More importantly, we know in real time which statistics are most meaningful to the direction of the market, or a stock, at any given moment. This kind of analysis helps us identify countries, sectors, and individual stocks eligible for inclusion in our portfolios.
Environmentally-friendly, Socially-Responsible, and Corporate Governance (ESG) data was previously only available to the largest institutions and family offices. Even then, the data was raw and fairly unusable to an investor without an engineering background.
What has come with the growing interest in sustainable and socially-responsible investing, is the birth of many single and/or aggregated sources of ESG data. The second filter in our selection process is whether or not the stock (or country) has exemplary ESG ratings. In other words, we own stocks that are attractive from fundamental and technical perspectives AND also leaders in regard to ESG criteria.
Having spent most of our careers working at banks, broker-dealers, and traditional RIA firms, we find it encouraging that investors focused on sustainable investing are collaborative and supportive of each other. In some ways, our investment committee is a virtual one. We have deep relationships with investment firms around the world that are passionate and experienced about this space.
We prefer to own individual stocks and bonds over funds. Our clients’ portfolios typically hold less than 100 positions, rather than trying to mirror an index. We do not allocate investments to the typical style-boxes that our industry likes to use. We prefer to invest for the duration of a market cycle, for growth at a reasonable price, earning long-term capital gains treatment. Our allocations are not static, but dynamic, adjusting to changes in market conditions or your unique financial objectives.
For the year ending December 31, 2017, the Portola Creek Domestic Equity Model Portfolio was up 23.8%, outperforming the S&P 500 by 440 basis points.
— Learn more about the year ending 2017: Read Our Quarterly Commentary
Want to learn more about Portola Creek’s services or how to become a client?
We deliver thoughtful solutions to each client’s unique financial objectives. Tell us what you are hoping to accomplish and Portola Creek will help you build and execute a comprehensive plan.
Chat with us today: 415–990–9499
or email the office at: firstname.lastname@example.org