Horizons West Capital Partners, LLC

Recommended Reading

Bernstein, Peter L. Against The Gods. New York, NY: John Wiley & Sons, 1998.

MacKay, Charles. Extraordinary Popular Delusions & The Madness Of Crowds. Radford, VA: Wilder Publications, 2008.

Taleb, Nassim Nicholas. Fooled By Randomness. New York, NY: Random House, 2004.

Swensen, David F. Pioneering Portfolio Management. New York, NY: Simon & Schuster, 2009.

Mandelbroit, Benoit & Hudson, Richard L. The (Mis)Behavior Of Markets: A Fractal View Of Financial Turbulence. New York, NY: Basic Books, 2004.

Graham, Benjamin. The Intelligent Investor. New York, NY: HarperCollins, 1973.

Fox, Justin. The Myth Of The Rational Market. New York, NY: HarperCollins, 2009.

Lowenstein, Roger. When Genius Failed. New York, NY: Random House, 2000.

El-Erian, Mohamed. When Markets Collide:Investment Strategies For The Age Of Global Economic Change. New York, NY: McGraw Hill, 2008.

Ellis, Charles D. Winning The Loser’s Game. New York, NY: McGraw Hill, 2002.

Sites of Interest

The following are a collection of websites considered to be excellent resources for independent financial advisors, wealth managers, and their clientele. These sites provide a unique blend of information, insight, and context on a wide variety of topics relevant to the investment advisory and wealth management marketplace.

Barron’s

Bloomberg

Business Week Magazine

CFA Institute

Financial Advisor Magazine

Financial Times

Fortune Magazine

Institutional Investor Magazine

Investment Company Institute

Investment News

Seeking Alpha Magazine

Smart Money Magazine

The Dismal Scientist

The Economist

The Wall Street Journal

The Washington Post

U.S. Securities & Exchange Commission

Yahoo Finance

Model Portfolio Performance

The performance of the HWCP Model Portfolios is calculated daily and published monthly to a restricted section of the Horizons West Capital Partners website. The performance is provided to and verified by leading RIA custodians as well as several nationally recognized separate account manager platforms.

To request access to the performance of the HWCP Model Portfolios, please click the link below. Please note that this performance document is not for public distribution and will only be sent via email to financial advisory professionals with a business email address.

HWCP Model Portfolio Performance

HWCP Multi-Strategy Hedged Income Model Portfolios

HWCP has partnered with a leading third-party overlay portfolio manager to launch a highly differentiated series of ETF-based Model Portfolios that are now available to Financial Advisors on a number of the major independent RIA custodian platforms. These Models are based on several of the HWCP consulting oriented Target Portfolios (discussed elsewhere on the HWCP website) that have been provided to advisors since 2008 and have an almost 5-year investment performance track record.

The HWCP Multi-Strategy Hedged Income Model Portfolios (click for Presentation)

HWCP Multi-Strategy Hedged Income : Conservative Model
HWCP Multi-Strategy Hedged Income : Balanced Model
HWCP Multi-Strategy Hedged Income : Growth & Income Model

These Models will invest exclusively in Exchange Traded Vehicles (ETN’s and leveraged ETF’s excluded) and have been designed to generate market leading levels of current income while still retaining varying degrees of capital appreciation potential. The Models have been assembled utilizing a highly evolved multi-strategy form of portfolio construction and will be strategically managed toward a specific volatility target over time in the attempt to minimize excess, unnecessary, and/or uncompensated risk.

HWCP is a leading national proponent of the “All-Weather” style of portfolio management, a system of managing assets best characterized by the flexible utilization of multiple asset classes and investing strategies through time in order to create a well-rounded, focused, and optimally diversified portfolio. The style of portfolio management as practiced by HWCP as evidenced through the HWCP Model Portfolios has a foremost regard for protecting against the unknown, and willingly gives up some portion of any future positive market return potential in order to rigorously protect against loss.

The HWCP Model Portfolios are designed using a highly flexible Core/Satellite methodology, which allows for the inclusion of both strategic and more tactical portfolio rebalancing adjustments. The preservation of capital is at all times considered a primary objective of all HWCP investment strategies.

 

Emerging Manager Focus List

Through its ongoing manager search efforts, HWCP has identified a growing number of investment managers that possess the range of characteristics typically required for formal inclusion on the HWCP Recommended List of managers, with the notable exceptions of not being a current beneficiary of a substantial asset base and/or a long-term performance track record.
HWCP has thus decided to publish an Emerging Manager Focus List to provide the opportunity for Advisors and their clients to benefit from exposure to these potentially outstanding investment vehicles while they are still relatively anonymous and well below the radar screen of the greater financial advisory community. This Focus List will be comprised of a limited number of specialized investment managers deemed to be the most highly regarded undiscovered entities operating within each asset class as identified and utilized by HWCP.

The research methodology undertaken by HWCP in the identification of all Emerging Managers is identical to that previously described in the Manager Search tab of this menu.

HWCP Target Portfolio Performance

The performance of the five HWCP Target Portfolios is calculated daily and published weekly to a restricted section of the Horizons West Capital Partners website.

To request access to the performance of the HWCP Target Portfolios, please click the link below. Please note that this performance document is not for public distribution and will only be sent via email to financial advisory professionals with a business email address.

HWCP Target Portfolio Performance

HWCP Target Portfolios

To allow for current and prospective advisor clients to assess the efficacy of all HWCP consulting related risk tolerance profiling, asset allocation modeling, and manager search activities, a series of Target Portfolios have been created that correspond to each of the five investor risk Profiles referenced in the Risk Profiling section of this website. Each Target Portfolio will be comprised of specific suggested portfolio exposures to each of the investment managers on the HWCP Recommended List operating within each of the fourteen distinct asset classes utilized in the HWCP portfolio construction process.

The HWCP Target Portfolios are designed to accurately reflect the complete intellectual property of the underlying HWCP consulting methodologies (Risk Profiling, Asset Allocation Modeling, and Manager Search). The performance of each Target Portfolio is tracked on a daily basis and is published weekly on the HWCP website for clients and potential clients considering HWCP consulting services.

HWCP Target Portfolios are not actively managed live investment portfolios, and are not associated with or related to any HWCP sub-advised or direct investment advisory services. The Target Portfolio performance is calculated and maintained for illustrative purposes only and is specifically applicable only for those prospects and clients considering HWCP consulting services.

Manager Search

The task of identifying investment managers likely to produce market leading investment returns on a prospective basis is an exceedingly difficult undertaking requiring a rigorous combination of quantitative and qualitative evaluation. However, the typical industry practice of assessing investment managers by utilizing historical returns or style box adherence as the principal forms of analysis is quite likely to result in imprecise if not materially erroneous conclusions. To further complicate the matter, most investment manager “research” is performed by relatively junior personnel who very often have never had any actual portfolio management experience. Given these circumstances, it should not be considered a surprise that the latest academic research definitively shows that far too many investment manager “hiring/firing” decisions are essentially poor decisions, with the fired manager typically outperforming the hired manager by a very considerable margin over the succeeding years. Something is very clearly wrong with the manager search business as it is currently practiced by the investment advisory and consulting industry today.

The HWCP Approach

HWCP believes that superior investment managers distinguish themselves predominantly along the following five factors: philosophy of risk control, process of decision making, cultural orientation, ownership structure & rewards system, and excellence of personnel. These factors are universally qualitative in nature, and require a differentiated and non-traditional thought process in order to properly measure. At the same time, HWCP believes that it is critically important for those purporting to provide manager search capabilities to actually have a history of successfully investing assets across multiple investment styles, strategies, and market cycles. There is simply no substitute for the knowledge, judgement, and healthy regard for risk that can only be acquired after many years of practical investment management experience.

Manager Selection

To populate the major asset class exposures derived from the Dynamic Asset Allocation Model described elsewhere, HWCP will utilize the multi-decade, hands-on portfolio management experience of its Founder/Managing Member to identify, compile, and make available to clients a Recommended List of investment managers operating within each asset class that are deemed to be the most attractive and worthy candidates for timely ownership. The HWCP Recommended List of investment managers will consist of managers and/or vehicles across the universe of available investment styles and/or strategies, and will be continually assessed and amended as necessary. All managers on the HWCP Recommended List must have a highly refined and documented approach to the management of risk and must have a demonstrated history of being responsible and ethical stewards of investment capital.

The HWCP Recommended List of investment managers should not be considered merely an “All Star” team of recently top performing managers as other investment consulting services typically provide. The managers on the HWCP Recommended List are selected specifically for their ability to consistently generate attractive levels of risk adjusted investment return through time, regardless of the overall market environment, while at all times protecting against the illogical forced exposure to investment styles and unproductive benchmark hugging that is unfortunately so prevalent across the investment management industry today.

All investment vehicles on the HWCP Recommended List must offer daily pricing, and may employ long only, short only, or long/short investment strategies regardless of asset class or investment style.

Asset Allocation Modeling

HWCP has created and maintains a proprietary Dynamic Asset Allocation Model that utilizes state of the art processes in seeking to consistently identify through time the most attractive combination of risk adjusted return opportunities between and among the fourteen major asset classes identified by HWCP as being a representative and complete sample of the global investment opportunity set. These asset classes are listed below and are in terms of a United States investor:

Domestic Equity: Large Cap, Mid Cap, Small Cap

International Equity: Developed Market, Emerging Market

Equity Like: Commodity, Real Estate

Global Fixed Income (Short Term): Investment Grade Aggregate

Global Fixed Income (Long Term): Investment Grade Aggregate

Global Fixed Income (Specialty): High Yield, Mortgage Backed, Inflation Protected

Hybrid/Hedged: Multi-Strategy

Cash

Through the recurring employment of this Model, HWCP will construct a series of customized Target Portfolios corresponding to each of the investor Profiles that are designed to maximize future investment return given the targeted level of acceptable volatility. All HWCP Target Portfolio rebalancing will occur on a regular and timely basis and will incorporate proprietary estimates for both asset class expected return and future asset class risk and correlation. Techniques of portfolio optimization, Monte Carlo simulation, and non-normal curve statistical analysis will be utilized in these efforts.

The Target Portfolio developed for each of the five HWCP Investor Profiles will not be static in nature, but will instead retain a great deal of flexibility to allow for a more realistic assessment of the prospective return potential (on an absolute as well as relative basis) offered by each of the included asset classes utilized in the portfolio construction process.