Drystone Total Portfolio Management
Concentrated Investments + Diversified Investments = a Total Portfolio solution.
In its research process, portfolio reporting, and fee schedules, Drystone clearly differentiates between the following two approaches to investment management:
Drystone Concentrated Investments:
Drystone Diversified Investments:
Drystone applies careful scrutiny and selection to all investments, both Concentrated and Diversified, and combines them into Total Portfolios designed to outperform benchmarks contained in each client’s Statement of Investment Objectives.
Active investment freedom combined with overall diversification can yield a more robust portfolio.
Drystone defines a robust portfolio as one that offers real return potential without excessive Total Portfolio risk. Genuine diversification comes not from a multitude of small positions but from a portfolio constructed of truly varied, differentiated assets. The ideal addition to a portfolio brings both solid returns and low correlation with the other assets in the portfolio.
Drystone takes risk assessment very seriously throughout all parts of a portfolio but does not apply certain common, but in our view ineffective or counterproductive, constraints within the Concentrated Investments portion of the portfolio:
Hence the importance of combining Diversified Investments with Concentrated Investments – Drystone wants each client’s Total Portfolio to achieve genuine diversification and risk awareness while letting both Diversified and Concentrated Investments pursue durable added value free of distractions.
Each client’s Statement of Investment Objectives sets minimums and maximums for the percentage of a portfolio to be held in Concentrated Investments and in Diversified Investments. As another self-policing step, the performance of the Concentrated Investment portion must meet or exceed its own benchmark to preserve its target percentage in portfolios.
The goal is a strong Total Portfolio and investor staying power.
Drystone believes that its Total Portfolio Management can generate the greater investor staying power essential to long-term investment success. A Drystone Total Portfolio seeks to: