The MDE Group adds substantial long-term value to client portfolios using many sophisticated techniques that are tightly coordinated with our clients' overall strategic plans, including:
Open-architecture investment platform of best-in-breed managers
The MDE Group is free to objectively evaluate any and all investment firms. The benefit to our clients is that their portfolios are structured with only best-in-breed managers across all asset classes and investment styles.
Unique value-added offerings designed to produce attractive returns with stability and a minimum of volatility
The MDE Group is entrusted with helping our clients to grow and preserve their wealth, and efficiently transfer it to next generations. Given this challenge, and our many years of experience investing for high net worth investors, there are certain unique solutions that we are best suited to provide directly to our clients. Each of our solutions is designed to help our clients to achieve attractive returns with a minimum of volatility and in line with the hallmarks of our offering which are transparency, liquidity, and low fees.
Proper diversification across asset classes and investment styles
The MDE Group builds portfolios for our clients that are diversified across the traditional asset classes of cash, fixed, and equities, but also incorporates significant allocations where appropriate to hybrid and alternative asset classes. By fully diversifying our portfolios, we help ensure that our clients meet their financial goals with a minimum of volatility.
Separate account management across all asset classes and investment styles
The MDE Group was an early innovator in the use of separately managed accounts for high net worth investors. This investment vehicle offers the flexibility of direct security ownership relative to our ability to customize strategize for our investors, harvest losses, etc. In addition, we successfully employ the leverage of an institutional investor to negotiate favorable manager fee rates for our investors.
Mutual fund investments to supplement separate accounts where appropriate
The MDE Group may also employ mutual funds to access strategies for smaller allocations or where a given strategy is otherwise unavailable to our investors. Mutual funds may also be used for tactical allocations due to the ease of trading funds and liquidity associated with mutual funds relative to commitments to separately managed accounts or other investment vehicles.
Hedge funds
The MDE Group offers access to high quality hedge funds and funds of funds where appropriate for the alternative asset class allocation of our clients’ portfolios. Our goal relative to this allocation is to add non-correlated or hedged strategies to reduce overall volatility, but with a focus on our hallmarks of transparency, liquidity, and low fees.
Active tax management and loss harvesting
The MDE Group subscribes to the thinking that it’s not what investors earn, but what they keep that is important. For this reason, we are tax aware in our manager selection and portfolio development process. In addition, we actively harvest losses in our client portfolios where opportunities exist to create tax advantages for our clients.
Proactive hiring/firing of managers
The MDE Group employs a comprehensive process of quantitative and Socratic qualitative due diligence to proactively hire and fire the managers that are the building blocks of the portfolios we create for our clients. We have a bias against making rash decisions to fire managers for short periods of underperformance, but managers not meeting our expectations will ultimately be replaced.
Ongoing portfolio monitoring
After choosing managers and building portfolios for our clients, The MDE Group’s Investment Committee continues to monitor our clients’ portfolios relative to achievement of goals, changing circumstances, and the success of the individual managers.
Consolidated performance and custom benchmark reporting
The MDE Group regularly reports to our clients on the performance of the managers that make up their portfolios, along with performance at the style, asset class, and overall portfolio levels. In addition, we report performance relative to a custom benchmark – a weighted average of indices determined at the asset class level. So our clients always know how they are doing v. the markets.
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