How does the Sachem Rock Model Support “Client Comfort”?

Sachem Rock Performs Its Own In-House And In-Depth Investment Research

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A Well Honed Knife
Painting by Doug Hall

Yes, we refuse to rely on the investment analysis of people we do not know, or a methodology we feel may lack validity, or important financial analysis we are not certain has even been performed.

Many of our competitor investment advisors rely on investment recommendations and conclusions drawn from third party research without understanding the analytical methodologies employed, their validity, depth and breadth, or frequency of the investment analysis. So we, here at Sachem Rock, believe that reliance on third party investment research adds an unnecessary element of risk to the investment equation.

This fundamental aspect of Sachem Rock’s operating model insures that we maintain the highest level of due diligence for our Client’s investment assets.  It is also critical to high “quality” Client communications essential to promote Client “understanding”.

Furthermore, our in-house investment research is critical to attaining high quality Client communications.  Risk is not static, but it is highly dynamic and changes real time.  By doing our own in-house research, Sachem Rock remains continually and quickly in touch with developments regarding the investment assets and portfolios we have developed for our Clients.

Communication between the advisory firm and the Client should not start when a third party publishes a new report or when it prompted by a Client telephone call.  By doing its own research in-house, Sachem Rock has access to information real time and has the ability to initiate communication when events occur that are significant to the risk-return calculus for each asset positions or portfolio.  In this way, we are able to drive Client understanding with timely and relevant information.

Subject To Client Preferences, Risk Tolerance, Market Or Stock Specific Conditions, And Client Understanding We Will Employ Additional Risk Mitigation Tools During Periods Of Elevated Market Volatility, Or Elevated Specific Risk.

Sachem Rock was founded in the wake of the United States Financial Crisis of 2008. This period was characterized by many investment banking scandals, persistent and significant market volatility, and elevated systematic (market) risk that continued through most of 2012.

Absent specific risk mitigation techniques such as index and stock specific puts, in the highly volatile markets of the last several years, many investors may have abandoned sound long term investments prematurely, before their investment thesis and resulting asset appreciation is realized.

Depending upon Client investing risk tolerance, style, preferences, and understanding, Sachem Rock can employ different investment and portfolio strategies to reduce portfolio volatility, systematic (market) risk, and risk specific to an individual security in a number of ways.  Risk can be diminished through widely accepted risk mitigation techniques such as correlation analysis, index and security option strategies, ETFs, and short/long equities positions, and most importantly, domestic and international diversification.

The key objective of minimizing systematic (market) risk is to enable our clients to pursue investment opportunities that have longer time horizons, which by their nature are fundamentally driven.

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