Capital Strategies Investment Group is an investment management company headquartered in Denver, Colorado. Founded in 1993, they have over 25 years of experience in providing customized investment solutions to high net worth individuals, families, foundations and endowments. Their investment philosophy focuses on building globally diversified portfolios while managing downside risks. In this article, we will provide an in-depth review of Capital Strategies Investment Group, analyzing their investment strategies, performance history, client services and more. Key factors we will evaluate include their asset allocation methodology, risk management techniques, portfolio customization process, fee structure and client satisfaction levels. The goal is to help investors better understand if Capital Strategies Investment Group is the right fit to help them achieve their investment objectives.
Capital Strategies follows a disciplined strategic asset allocation approach
At the core of Capital Strategies’ investment process is a robust strategic asset allocation methodology. Their investment committee, which includes some of the firm’s most seasoned portfolio managers and analysts, oversees the design of their proprietary asset allocation strategies. These models are aimed at maximizing returns for the level of risk taken on and follow a core-satellite structure. The core comprises mainly of low-cost index funds that provide broad market exposure. The satellite includes actively managed mutual funds and ETFs that allow for greater flexibility in terms of tapping into opportunities in specific sectors or geographies. Capital Strategies offers clients a choice of model portfolios across five risk profiles – ranging from aggressive to conservative. Investors fill out a detailed questionnaire that assesses their risk appetite, goals and preferences. Their responses are then used to recommend the optimal model portfolio to invest in. The asset allocation is monitored continually and rebalanced at least annually to adjust for deviations from target caused by changing market conditions. This disciplined methodology takes much of the guesswork out of investing and builds portfolios that are truly customized for every client’s unique requirements.
They employ multiple risk management techniques to protect client portfolios
In addition to strategic asset allocation, Capital Strategies utilizes several risk management strategies aimed at minimizing portfolio losses during periods of market turbulence. Some examples include – 1) Broad diversification across asset classes, market caps, sectors and regions to avoid overexposure to any single factor. 2) Allocation to alternative investments like absolute return funds and managed futures that tend to have lower correlation to mainstream assets. 3) Dynamic allocation shifts between stocks, bonds and cash to mitigate risks when valuations are stretched in any one area. 4) Use of risk overlay products like option collars that offer downside protection. 5) Regular rebalancing and monitoring to ensure optimal risk-adjusted positioning at all times. Their focus on risk management has enabled client portfolios to successfully weather challenging markets in the past. For instance, during the global financial crisis of 2008, their average client portfolio declined only about 13% versus over 35% for the S&P 500 index.
They offer comprehensive client services focused on education and transparency
Capital Strategies places a strong emphasis on client education and transparent communication. Each client is assigned an investment advisor who acts as the main point of contact for any queries. The advisors are experienced professionals who take time to explain the firm’s investment process and portfolio recommendations in a simple manner. Clients have 24/7 online account access to track their portfolios in real-time. The firm provides detailed quarterly performance reports that summarize portfolio holdings, returns, fees and transactions for the period. These reports help enhance understanding of how the portfolios are managed. Capital Strategies also offers seminars, webinars and newsletters to keep clients informed on markets and educates them on prudent investment practices. Many client testimonials specifically highlight the top-notch customer service experience and ease of communication as key positives of associating with the firm.
Their fee-only structure ensures expenses are reasonable for clients
Capital Strategies employs a straightforward fee-only model to ensure total transparency in costs for clients. They charge an annual advisory fee that is based on total assets under management. The fee typically ranges from 0.50% to 1.25% depending on portfolio size and decreases at higher asset levels due to tiered pricing. There are no commissions or any other hidden charges. The fee-only structure aligns the firm’s interests with clients’ interests as both benefit when portfolios grow over time. Many of Capital Strategies’ clients are high net worth individuals who appreciate the fee-only model since it removes conflicts of interest that commissioned brokers may have. Overall, their fee schedule is very competitive relative to other RIAs managing similar sized portfolios.
In summary, Capital Strategies Investment Group follows a highly disciplined investment process focused on strategic asset allocation, risk management and customization for individual client needs. Their long track record, transparent fee structure and stellar client service makes them a leading choice for customized investment management services.