Gauging your risk appetite
Our first act
When a client entrusts PH Hession Enterprise with oversight of their capital, one of our first acts is to identify their risk tolerances. These are the foundations of our pledge to ensure all our activities remain within the clearly-defined boundaries of that client’s risk profile.
Risk vs return
Understandably, most investors are primarily concerned with potential return when evaluating new investments but it is the consideration of the risk inherent in the investment which should be of equal concern. At PH Hession Enterprise, we diligently weigh risk against return on all our clients’ investments.
Diversification = reduced risk
Diversification in investment is extremely important because focusing all one’s capital into a single investment - be it stock, bonds, real estate, cash or otherwise - is rarely, if ever, sound practice. As we are staunch advocates of investment diversification, we select investments across diverse industry sectors, geographic locations as well as across varying security types (equities or bonds).
Identifying potential
Our investment approach employs both fundamental and quantitative analysis with which we seek to identify market trends that have durations of at least a few months. We then select the appropriate allocation of assets that can best maximize returns during the duration of those trends.
Reducing the cost of investing
We eschew investments that have excessive fees attached to them and gravitate towards the most cost-effective, strategic path for wealth creation. The proliferation of ETFs and mutual funds has resulted in a veritable explosion in the amount of choice available to investors but variations in management charges from provider to provider means we must remain ever vigilant to ensure our clients get the best value for money.
