General Info:
Traditional money managers do one of two things: Active managers focus on picking individual stocks, the antithesis of diversification; index managers hold many securities but mimic arbitrary benchmarks. Cedarwinds uses a different approach. Our firm’s guiding investment philosophy is that portfolios having multiple index exposures and asset class diversification lead to higher expected returns on a more consistent basis over time compared with traditional money management approaches. Our philosophy has been shaped by the belief that successful investing means not only capturing risks that generate expected return, but reducing risks that do not. Avoidable risks include holding too few securities, betting on countries or industries, following market predictions, and speculating on "information" from rating services. To all these, disciplined diversification is the antidote. Proper diversification washes away the random fortunes of individual stocks and positions client portfolios to capture the returns of broad economic forces.