Our Investment Strategy

At Capital Advantage, Inc., our customized investment approach focuses on a unique mix of asset allocation and fundamental research—meaning we take into consideration the current economic and market environment and develop a mix of carefully selected assets that is right for your unique financial situation.

Asset Allocation

Asset allocation refers to the way in which you weight diverse investments in your portfolio in order to try to meet a specific objective. Utilizing this diversification strategy can potentially lower your investment risk and increase your chances of meeting your investment goals. While diversification cannot eliminate the risk of loss, a well-crafted plan of action over the long term can help you weather all sorts of changing market conditions.

At Capital Advantage, Inc., we know that no two investors are alike, and we can help you tailor an allocation strategy for your needs. You can rest assured knowing that your asset allocation plan incorporates your unique financial situation, goals and risk tolerance.

Portfolio Manager Selection

At Capital Advantage, Inc., we believe that a mutual fund is only as good as its leader, and we take the time to investigate the background of each and every fund manager we consider.

We start with a quantitative analysis, meaning we narrow down a pool of thousands of portfolio managers based on key criteria. These include performance, consistency, tenure, cost, turnover and most importantly, a clearly defined and repeatable investment process.

Once we narrow down the universe of portfolio managers to an elite few, we evaluate each manager in a more qualitative manner. We research the structure of each manager’s firm, for example, and we inquire if managers have a meaningful amount of their own wealth invested in their portfolios. At Capital Advantage, Inc., we invest in the funds we recommend to clients, and we believe portfolio managers should do the same.

Ongoing Portfolio Management

One cornerstone of our investment strategy is the belief that our job is never done. The economic and market environment is continually changing. Your financial situation or goals may change. What works today may not work tomorrow. We will revisit your investment strategy to make sure it stays in line with your long-term goals.