"Watch The turtle. He only moves forward by sticking his neck out"

Louis V. Gerstner, Jr.


OUR APPROACH to Investing

Yankee favors an approach that is highly diversified, seeks long term growth and hedges risk.

Depending upon client wishes, diversification may include public and private securities representing large and small companies both foreign and domestic.  At times investments may favor one or more approaches such as cash, income, value, growth, and alternatives.  Sometimes, multiple managers employing varied styles of investing may be used.  This could include a variety of funds, both public and private.  For separately managed accounts, our preference is to keep fees to a minimum by investing directly and holding long term.

Long term growth occurs by holding securities for years, adding to positions when they experience negatives that are deemed short term and/or cyclical and maintaining focus on a long term investment thesis.  Of course, there are instances when a long term thesis changes and a security needs to be sold.  

Hedging is a two-edged sword.  By definition, hedging incurs a cost that at times may inhibit growth and at other times may help to preserve capital.  Over time, it tends to reduce volatility of returns.  Hedges can take many forms.   For example, holding a larger-than-normal cash position hedges a portfolio, helps returns in a down market and provides the where with all to add to core positions at lower prices.  It may hurt returns in an up market.  Other types of hedges include shorts, inverse ETFs, funds that invest in Commodity Trading Advisors (CTAs), options, etc.  All incur a variety of risk and need to be used judiciously by experienced managers.