Capital Allocation review (coming soon)
A look at process:
Lets talk about your current process for selecting and allocating assets. Mapping the process is where we start the journey. Mean variance approaches and efficient frontiers for capital allocation and risk projections don't work that well. We will explore that with you.
Your portfolio in the Nature of Value Framework:
You have allocated to sectors, asset classes, geographies etc. but is that really diversification. How did 2008 treat your portfolio? Maybe you allocated to assets with low correlations. Did those assumptions hold? How often should you rebalance your allocation. Does your allocation framework acknowledge the relationships between Value, Price and Money across economies over time?
Business & investment evaluation
Valuation and analysis:
Price and value drift. Prior to investing, this drift can create opportunity. During the holding of an asset, a downward drift may be disconcerting. A second set of eyes and fresh perspective may confirm or disconfirm the original value thesis leading to a proper course of action or non-action. We can review current or potential holdings for risks and threats.
Innovation and competitive analysis:
All value is the result of earlier innovations that created the corporate capabilities to provide excess margin and Returns on Capital. The ability and duration for which a firm can monopolize innovations determines their likely profitability and duration of life. Let us look at your equity, debt and alternative asset allocations applying The Nature of Value Framework.