Morton Capital has a long history of identifying unique investment opportunities
Our fundamental goal is to preserve our clients’ wealth. Our clients have worked hard to build their wealth and are not looking to make it again. That’s where we come in. Morton Capital has a long history of identifying unique investment opportunities that help provide true diversification and manage risk. We are passionate in our belief that you cannot manage downside risk with only traditional stocks and bonds. Instead, there is an entire universe of innovative investment solutions that are available for open-minded and savvy investors.
During the 2008 financial crisis, traditional diversification failed many investors, as assets that had historically performed differently than one another in fluctuating market environments (such as U.S. and international stocks) all went down at the same time. Even though many investors felt like there was nowhere to hide, in reality there were certain asset classes that performed well because they were driven by fundamentally different risk factors.
Key tenets of alternative investments include:
Differentiated Risk Factors – When building portfolios, we don’t want all investments to go up at the same time, as that does not bode well during periods of volatility. Most investments are tied to the growth of the global economy and will perform well during strong economic times and poorly during recessions. However, there are investments that generate their risks and returns from sources that are independent from the global economy. Adding these investments to a portfolio can provide better diversification benefits during challenging investment environments.
Return Premium – When evaluating any investment, the fundamental question is: “Are you being paid for the risk you are taking?” We believe that in periods where market valuations are elevated, private investments can offer a higher level of conviction as to the likely range of gains and losses. Private investments* should also provide investors with an illiquidity premium to compensate them for limiting their liquidity.
Hedging – The term “hedge fund” has become widely used as it relates to any private fund with a flexible mandate. At Morton Capital, we focus on hedge fund strategies that are truly meant to hedge or limit an investor’s downside risk. When an investment loses less on the downside, it does not have to gain as much on the upside to still provide attractive long-term results.
Cash Flow – In low-interest-rate environments, alternative investments can often generate higher and more consistent levels of cash flow than the traditional markets. We favor alternative investments that focus on current cash flow as opposed to those with only long-term appreciation potential.
*Certain private investments are only available for accredited (high net worth) investors that meet specific qualification criteria.