Our Investment Philosphy
Riverwood’s mission is to preserve and grow capital by producing above-average absolute returns with reduced volatility and manageable risk.
An essential element of Riverwood Capital’s role as your investment advisor is to design a portfolio investment strategy that maximizes the likelihood of achieving your goals and objectives. This strategy will include the most appropriate combination of asset classes (equities, fixed income and cash equivalents) for your unique circumstances, risk tolerance, and time horizon.
These investment portfolios span from conservative low volatility to aggressive high volatility structures. All accounts are separately managed, and can be customized to independently suit the needs of every investor.
The methods we use to analyze investments combine both fundamental and technical analysis. Fundamental such as economic conditions, earnings, industry outlook, price earnings ratios, dividends, general level of interest rates and company managements. Technical consisting of charting price performance, volume trends, moving averages and relative strength.
Importantly, we stick with some basic tenets for investment success. We come up with our own independent decisions. We realize that no one knows for sure as the investment landscape is not linear but multidimensional and often hard to gauge, especially during the environment we face today. They are simple to articulate but often hard to execute. Some of them include:
I. The discipline of acknowledging and stopping out investment losses before they become fatal is probably the most important.
II. Let your profits (both long and short) run.
III. Respect the primary trend of the market despite what you hear and read from so called experts. Markets don’t lie.
IV. Stay permanently flexible in your approach.
Our Business Philosophy
Riverwood Capital Advisors was founded on the basis of four principals. First, our clients’ interests always come first. Our experience shows that if we serve our clients well, our own success will follow.
Second, the emergence of fewer but ever larger financial conglomerates will continue the trend toward standardized financial products developed to serve a mass market. We believe that standardization of service conflicts with the needs and aspirations of an increasing number of well-informed investors. We have chosen to build a specialty asset management firm that provides service beyond the management of money. We strive to be a sounding board for our clients’ investment ideas and offer market intelligence by acting as a connector to a large network of investment professionals. Thus, we serve only a limited number of clients. We deliberately avoid the path to mindless growth.
Third, our assets are our people, capital, and reputation. If any of these is ever diminished, the last is the most difficult to restore. We are dedicated to complying fully with the letter and spirit of the laws, rules, and ethical principles that govern us. Our continued success depends upon strict adherence to this standard.
Finally, moral compass and professional integrity cannot be compromised when asking clients to entrust us with their money. It is our policy to be compensated exclusively by our Clients. We do not accept commissions from managers or intermediaries; do not raise capital for other managers; do not take economic interests in hedge fund firms, and do not receive “soft dollars”. This ensures that investment decisions are never biased by conflict of interest. Integrity and honesty are at the heart of our business.