Our Services

Asset Management

The essence of investment management is the management of risks, not the management of returns. That point is fundamental and is what differentiates average (or below-average) investment management from superior investment management.

Oak Grove’s approach includes utilization of portfolio construction strategies and proprietary risk management techniques in managing Oak Grove’s investors’ portfolios.  Oak Grove’s approach is designed to avoid large losses by executing a disciplined portfolio strategy that is consistent with the principles of modern portfolio theory.

Oak Grove’s objective is to generate real returns (i.e., in excess of inflation) over time, in excess of historical equity returns at commensurately lower risk levels than relevant market benchmarks.

  • Avoiding large losses –  There have been five separate declines of 25% or more in popular US equity indices from 2000.  Oak Grove seeks to avoid large losses because, for example, a 25% decline would require a later investment return of 33.3% to get back to a break-even point.  Risk measurement is a key component of performance objectives and emphasizing loss prevention strategies is a core tenant of Oak Grove’s investment management philosophy.
  • Disciplined strategy – Asset allocation is a proven strategy for mitigating portfolio risk while optimizing return for a given level of risk.  However, Oak Grove does not merely “buy and hold” because it is not, in Oak Grove’s experience, sufficiently effective to mitigate risk.  Oak Grove customizes investors’ asset allocations according to each investor’s personal risk profile and investment time horizon, and subject to communication with investors regarding shifting and emerging conditions and objectives. Oak Grove is also mindful regarding realized gains in taxable portfolios, and Oak Grove seeks to mitigate tax liability through a variety of techniques.
  • Modern Portfolio Theory (“MPT”) – MPT has proven to be a useful initial basis for optimizing returns and mitigating portfolio risk for more than a half-century.  Oak Grove’s investment management approach seeks to apply the lessons of MPT in portfolio construction but, augments it with tactical strategies to further reduce risk or seek to exploit short-term market opportunities, as appropriate, and according to our proprietary set of factors.