Investment Philosophy & Process
Investing With Purpose, Not Benchmarks
At Authentic, we believe successful investing begins by clearly defining the objective.
Many investment products are designed primarily to track markets, sectors, or benchmark indices. Our objective is different. We seek to compound client wealth over time while carefully managing downside risk and preserving purchasing power.
The Authentic Core Portfolio Model is built around a long-term return objective of approximately 6% net of fees, rather than attempting to replicate the returns of a stock market index or balanced fund.
This distinction influences every aspect of our investment process.
A Different Starting Point
Many investment products are desined primarily to track markets, sectors, or benchmark indices.
Our approach is different.
Traditional Approach
Starts with benchmarks
Focuses on relative returns
Often remains fully invested
Measures success vs an index
Authentic Approach
Starts with client objectives
Focuses on long-term wealth outcomes
Actively adjust risk exposure
Measures success vs client goals
A Goal-Oriented Investment Approach
We believe portfolio construction should begin with the investor's needs rather than with traditional asset-class allocations.
For most families, the challenge is not maximizing returns at any cost. Rather, it is achieving sufficient returns to support real life financial objectives while avoiding losses that may permanently impair a plan.
Preserve Purchasing Power
Protecting purchasing power and reducing the impact of major market drawdowns.
Growth Wealth Over Time
Protecting purchasing power and reducing the impact of major market drawdowns.
Support Future Spending
Protecting purchasing power and reducing the impact of major market drawdowns.
Avoid Catastrophic Losses
Protecting purchasing power and reducing the impact of major market drawdowns.
Active Management Where It Matters
Active Management Where It Matters
Passive investing has become increasingly accessible and inexpensive. We believe investors should expect meaningful differentiation.
Our active approach is designed to adjust as risks and opportunities change.
Dynamic Equity Allocation
Geographic Allocation
Active Cash Management
Individual Security Selection
Sector Positioning
Risk & Opportunity Assessment
" When opportunities are attractive, we are prepared to invest aggressively. When risks appear elevated, we are willing to become more defensive."
Top-Down and Bottom-Up Investing
The Authentic investment process combines both macroeconomic and company-specific analysis.
Top-Down Perspective
We evaluate:
- Economic conditions
- Interest rates
- Inflation trends
- Valuations
- Market sentiment
- Recession risks
- Long-term secular trends
This helps establish an appropriate risk posture and informs portfolio positioning.
Bottom-Up Research
Individual companies are evaluated based on:
- Business quality
- Competitive advantages
- Financial strength
- Management quality
- Growth prospects
- Valuation
The goal is to identify businesses capable of creating shareholder value over long periods of time.
Growth at a Reasonable Price
Our stock selection is generally biased toward growth at a reasonable price (GARP).
We seek businesses that combine:
- Sustainable earnings growth
- Strong competitive positions
- Healthy balance sheets
- Attractive long-term prospects
At the same time, valuation remains important. Even outstanding businesses can become poor investments if purchased at excessive prices.
ESG Considerations
Environmental, social, and governance considerations form part of our broader investment assessment process.
While ESG factors are not applied through rigid screening methodologies, they may influence sector exposures, company selection, and overall portfolio construction when they materially affect long-term investment outcomes.
Long-Term Thinking
Successful investing often requires patience.
We are not attempting to predict short-term market movements or react to daily headlines. Instead, we seek to position portfolios to benefit from durable economic trends and business fundamentals while remaining attentive to evolving risks.
Our focus remains on preserving and growing client capital over years and decades rather than quarters.