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  Active Investing

We believe what separates portfolios of large institutional investors and retail investors is the commitment to build, and adhere to, a sophisticated investment implementation process. The Investment Committee at Diversified is tasked with developing and managing our process for managing client portfolios. The investment and economic worlds are constantly changing and evolving, and there should be dedicated individuals whose sole purpose is to navigate those waters for investors.

Fundamentals of Active Investing

Asset Allocation Shouldn't Be Static

Markets are constantly evolving and economic conditions changing, and a portfolio should adapt accordingly. We’re not talking about market timing here, which is the idea that you can get in and out of the market with any precision or constantly change your risk tolerance. What we’re referring to is that as economic conditions and asset values change, there are types of financial assets (stocks and bonds) that we believe will perform better in different environments. This could be overweighting geographies, market caps (large cap versus small cap), sectors, and even styles (growth and value for example). We believe the underlying asset allocation of a portfolio should consistently be adjusted to reflect the macroeconomic outlook, asset valuations, and investment opportunities that aren’t fully appreciated in market prices.

There are Thousands of Investment Options

There are literally thousands of stocks, bonds, mutual funds, and ETFs (exchange traded funds) that investors can choose amongst. How do you decide which securities to use in your portfolio? From our perspective, we believe there should be a rigorous process for making those decisions, such as when to invest in passive strategies versus concentrated active managers. Even with that, how do you decide amongst the hundreds of institutional-quality asset managers in each asset class? By creating and following a framework for selecting investments based on both quantitative and qualitative metrics, we believe investors can create a more sophisticated and thoughtful portfolio.

Please note, the information provided on this website is for informational purposes only and investors should determine for themselves whether a particular service or product is suitable for their investment needs. The content on this website is not intended to provide tax, legal, or accounting advice, and you are advised to seek out qualified professionals that provide advice on these issues for your individual circumstances.

Diversified, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. Diversified only transacts business in states in which it is properly registered or is excluded or exempted from registration.  A copy of Diversified’s current written disclosure brochure which discusses, among other things, the firm’s business practices, services and fees, is available through the SEC’s website at: Diversified does not provide tax or legal advice and individuals should seek the advice of their own tax or legal advisors for specific information regarding their situations. Investments in securities involve risk, including the possible loss of principal. The information on this website is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction.