Investment Management: We embrace PASSIVE and ACTIVE
At Brave Asset Management, we pursue an investment approach that seeks to combine the low cost and diversification offered by the passive world with the active judgement gained by over 150 years of Wall Street experience. We believe that this approach distinguishes us from most other financial advisory practices and allows us to target superior after-tax returns over the course of a market cycle.
For the “risk” portions of our portfolios, we begin with a default allocation of 75% U.S. stocks, 20% international stocks, and 5% commodities. That allocation can change based on our intermediate-term view of market opportunities and risks. We then use a combination of individual stocks and low-cost exchange-traded funds (ETFs) to create those exposures. We will use individual stocks in cases where we have high-conviction ideas and will use ETFs where we want a diversified exposure to a part of the market.
For the fixed income portions of our portfolios, we employ a similar approach. We make a judgement on the relative attractiveness of credit risk and duration risk and then use a combination of individual notes and bonds and ETFs to target the desired parts of the credit market.