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Our Investment Process

At Park Ridge Asset Management, we take a disciplined approach to managing our client portfolios.

Development of a Written Plan

We create a written Investment Plan for each of our clients. This plan will serve as the road map for how the client’s portfolio will be managed. The plan will include: a summary of the client’s investment goals, asset allocation targets, any specific constraints or limitations directed by the client, and appropriate benchmarks.

Asset Allocation

The majority of Investment returns are driven by asset allocation decisions. We seek to maximize the expected return profile of our portfolios by utilizing a diversified blend of investments. Long-term allocation targets are identified by four broad categories: Growth, Income, Absolute Return, and Inflation Protection. We will make tactical asset allocation changes based on where we see the greatest opportunities in the markets. These changes will be within an agreed upon range of the portfolio’s long-term targets.

Manager Selection

We perform a quantitative and qualitative review of potential managers in an effort to identify management teams that have generated superior risk-adjusted returns over time. We actively monitor these managers to ensure they are delivering on our expectations around their process and style of management. In addition to external managers, we may also manage a portion of a portfolio with individual securities consisting of large, blue chip stocks and high quality, intermediate-term bonds.

Portfolio Construction

We seek to construct a portfolio that reflects a mix of best available solutions given our economic/market outlook and a client’s risk profile. This may include mutual funds and ETFs, individual stocks and bonds, and non-public securities. When building portfolios we will introduce unique assets for diversification purposes. We will also place specific assets in different types of accounts in an attempt to maximize tax efficiency.

Monitor and Rebalance

We monitor our portfolios on an ongoing basis, and maintain open lines of communication with our clients. We continually challenge our investment thesis, and will rebalance back to our tactical targets periodically.