Our Investment Philosophy

"A good portfolio is more than a long list of good stocks and bonds.  It is a balanced whole, providing the investor with protections and opportunities with respect to a wide range of contingencies."     
Harry Markowitz in his 1959 book Portfolio Selection: Efficient Diversification of Investments

At Jackson Financial Management, we adhere to a globally diversified & risk-averse investment philosophy that seeks to emphasize capital preservation during bear markets and participation in the upside that bull markets provide.

Our investment philosophy begins with a top-down approach to identify global macro trends. Our investment team then further researches and discusses internally how these trends could create investment opportunities. We then identify positive exposures that we think will benefit client portfolios, as well as negative exposures to reduce or avoid.

After developing this global perspective, we evaluate a broad range of investment vehicles and try to select the most appropriate, cost-effective means for obtaining the desired exposures. We prefer liquid and transparent investment vehicles that do not limit redemption rights and that allow for a clear, unobscured perspective on risk and return.

We control risk by limiting position sizes, maintaining active stop-loss levels, and including a diverse set of exposures that have historically shown low levels of correlation. In addition, our investment strategy favors a tilt toward the generation of current income as historical evidence shows that current income is a significant source of investment returns over an entire market cycle.

We believe that our approach is optimal for our clients since one cannot reach their personal financial goals by generating positive relative returns, but instead, only by generating positive absolute levels of return.