Behind Closed Doors: What Is A Perfect Portfolio?

BY DONALD CONRAD
Fiduciary

What is the best selection of investments?

Research consistently has found: the best way to maximize returns across every level of risk is to combine asset classes rather than individual securities.

I use Modern Portfolio Theory to identify the ideal investment mix for each client. It is important to stress that every asset class has a known history of performance, and each one has a future which cannot be known. Every investment involves risk, which is another term for uncertainty. This is where things get tricky, because there is no risk in the past, no uncertainty about how things turned out. Then how are we creating the optimal mix? Diversification is the answer, investing in a variety of assets.

conrad-capital-investments-sidebarPredicting the long-term performance of just one asset class is harder than predicting the performance of a group of them. Even when most sectors of the market are moving up or down, there’s usually some outlier that’s bucking the trend. Because there’s no way to know in advance what that outlier will be, the best strategy is to own them all and weight them accordingly based on your specific risk tolerance and macroeconomic variables. What we need is long-term past performance data identifying the asset classes with favorable performance and acceptable levels of risk. 11 asset classes were identified based on decades of data and legions of academic researchers. I teach as many people as possible how to put those asset classes together into effective combinations of different investments.

From time to time I slightly overweight towards an attractive asset class when doing so will allow the portfolio to achieve good returns and helps to reach the client’s long-term goals. In the last few months I had several reasons to continue to slowly and carefully invest into the energy sector because fossil fuel related investments have a great chance to outperform their sector, industry or even the market as a whole, and they are at a great discount. I conducted an analysis and created an ENERGY BASKET containing an ideal mixture of US and international energy related equities, currency, and ETFs.

PRINT THIS ARTICLE: Behind Closed Doors: What Is A Perfect Portfolio?

Looking for more information on how to build the perfect portfolio?  Donald Conrad invites you to contact him with your questions or comments at dconrad@conradcapital.com or by calling 631-439-7878.

A Message from Donald Conrad

conrad-capital-donald-conradI am Donald Conrad, President and CEO of Conrad Capital Management. CCM is based in the heart of Long Island, Islandia (New York), right between the Hamptons and Manhattan. I have offered investment counseling, retirement plan advice to families and businesses across the country since 1998. I began my career in the financial services industry in 1982. Throughout my 34 year professional career I have helped labor union workers throughout NY State. My clients have included indispensable, experienced workers with specialized knowledge from all walks of life, ranging from firefighters to nurses to police officers and air pilots. I have seen firsthand the benefits that unions bring to their members and I worked hard to provide highly customized face-to-face fiduciary investment advice for affordable fees to active and retired workers.

“The purpose of life is not to be happy. It is to be useful, to be honorable, to be compassionate, to have it make some difference that you have lived and lived well.” – Ralph Waldo Emerson

I hold Series 7, 24, 63 and 65 licenses, as well as Certified Senior Advisor (CSA) Certification. I am an independent investment advisor; – registered with the Securities and Exchange Commission, as such subject to the Investment Advisers Act of 1940, and have a fiduciary duty to act in the best interest of my clients. In this role I have worked with complex portfolios and served the many unique needs that often require special management strategies. Previously, I served as Senior VP – at PaineWebber (1993 – 1997), Sr. Vice President at Shearson Lehman Hutton (1987 – 1993) and Sr. VP at E. F. Hutton & Co. (1982 – 1987).

CCM is dual-registered, and has three divisions:

• Registered Investment Adviser
• Broker Dealer Association1
• Alternative Investment Vehicle/Hedge Fund of Funds – CCM Partners, LP

I lead a great team of professionals keeping client centric solutions in focus. Investors continue to demand an increasingly high level of expertise, integrity and objectivity. We work hard, walk our walk every day and strive to be the best that we can. The team at CCM is comprised of educated, multilingual, and multinational professionals who are experienced in the areas in which they operate.

The main reason that I became a wealth manager was to help people deal with their money. Working with my clients to get them on the right track to meet their goals is a very rewarding part of my job and it is something that I really enjoy doing. Preparing for a financially secure retirement has become significantly harder in the 21st century. There is something unique about making meaningful and positive differences in the lives of many working professionals helping their transition into retirement.

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conrad-capital-investments-LOGO

Conrad Capital Management
1377 Motor Parkway, Suite 406 Islandia, New York 11749
dconrad@conradcapital.com  www.conradcapital.com
Phone: (631)-439-7878 Fax: (631)-439-7879


1 Securities are offered through Purshe Kaplan Sterling Investments, member FINRA/SIPC. Headquartered at 18 Corporate Woods Blvd., Albany NY 12211. Purshe Kapalan Sterling Investments and Conrad Capital Management are not affiliated companies.  

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