Traditional portfolio management with superior client service.
We are laser-focused on each client's unique combination of investment goals, risk tolerance, and income and liquidity requirements. We offer our clients a choice of investment management portfolios to meet their specific individual requirements and needs and we customize all our services to meet them. We strive to act in partnership with our clients to address them as they change over time.
We may invest in all kinds of domestic and foreign stocks, bonds, mutual funds, exchange traded funds and notes, and partnerships including those that invest in specialized asset classes like real estate. We custom tailor our selection and types of investments to each individual client’s objectives. If the client agrees, we may also invest in one of our limited partnerships, the Solaris Gemini Fund, a specialty fund that invests in high income producing, tax-advantaged investments such as Master Limited Partnerships (MLPs), and Real Estate Investment Trusts (REITs).
We draw on our considerable investment experience over almost five decades supported by the firm’s seasoned client service, administrative, legal, and technology colleagues. This special combination and depth of intellect, expertise and resources provides the infrastructure for ongoing investment excellence and superior client service.
Solaris believes that securities representing the greatest opportunity for appreciation are those exhibiting the most attractive future growth potential relative to current valuation. Operating within prudent risk/diversification guidelines, we strive to protect portfolio principal by tilting a portfolio's mix of stocks and bonds, active and passive, and adjusting sector and market cap exposure based upon changes in corporate, economic and financial market trends. Beyond seizing opportunities, a primary tenet of our philosophy is to protect portfolio principal through prudent risk management. And for taxable portfolios, we are mindful to offset or delay gains in order to reduce our client's tax burden.
Most investment management accounts are managed on a discretionary basis. The client gives us the authority and responsibility to formulate and then implement an investment strategy that the client has approved. That discretion means, among other things, that we decide which securities to buy and sell, when to buy and sell, in what amounts, and if applicable, through which brokers or dealers and at what commission rates or bid/ask spreads. While we maintain each client account on our portfolio accounting system, an unaffiliated, qualified, custodian holds the client’s securities and cash and reports directly to the client on a periodic basis.
Whether investing in stocks, bonds, mutual funds, domestic or foreign, we construct portfolios to meet that client's needs. Depending on time, geopolitical and market conditions among other things, the method of valuation and selection will differ by asset class, style, sector, industry or security. Our portfolios exhibit characteristics consistent with our primary goal of preserving wealth while enhancing risk-adjusted return, after all fees.
Global stock markets rewarded investors handsomely in 2017, with international stocks (MSCI World ex US) up 27.77%, the MSCI Emerging Markets Index rising 37.8% and the S&P 500 up 21.8%. While global equity returns were impressive, there were large return deviations within market sub-segments. In the US, value underperformed growth by over 1,600 basis points, 29.6% to 13.2%. The same pattern held true internationally. Likewise, US companies with larger market capitalization meaningfully outperformed their smaller counterparts. What sectors did well in the US? Technology stocks led the way at 38.8%. Not so well? Real estate investment trusts continued to struggle with returns in low single digits and energy-related MLPs actually recorded negative returns, as they have for the past 3 years. Now for a quick review of 2017 and then a look forward to 2018.Click here to read the entire commentary