Investment management is the professional management of various assets to meet specific investment goals for investors. Investors may be institutions or private investors. Investment managers can specialize in advisory management on behalf of private investors. Investment planning includes elements of financial analysis, stock selection, plan implementation, and ongoing monitoring of investments. Asset allocation is also an important part of investment services. Asset allocation is the division of assets between stocks, bonds, commodities, and real estate. As part of Clay Northam Wealth Management services we work with our clients to properly diversify their assets based on risk tolerance, asset level, and expected time frames for their financial goals.

Long term performance is an important aspect of investment management. In general, equities have performed better than bonds and bonds better than cash. Investment managers have different styles of fund management. For example, an investment manager may be growth oriented, value driven, specialize in small cap stocks, or prefer indexing. Depending on current market conditions, a particular investment style may outperform broad markets and other investment styles.

Risk-adjusted performance is a way to evaluate a manager’s overall value to a portfolio. Risk-adjusted performance measures a manager’s performance against the level of risk taken to obtain that performance. This is otherwise known as alpha. At Clay Northam we work with our clients to help determine an appropriate level of risk, properly diversity assets, and work with quality investment managers to seek solid long term returns.

With offices in Los Angeles County and Orange County, we are here to help business owners and executives with their financial planning and investment management.