Investment Philosophy

Blue Water offers our clients personalized investment plans that are customized to fit your needs and goals using our proprietary risk assessment and measurement process. Investment plans may include one or more of our proprietary actively managed in-house strategies and may be complemented by alternative investment options. We are focused on managing risk that is appropriate for our clients and positioning portfolios that are aligned with our macro economic outlook and assessment of risk/reward.

We ACTIVELY manage portfolios with timely tactical adjustments to minimize risk and position the portfolios to benefit from the next catalyst that will drive returns. Our goal is to avoid catastrophic losses, yet we are willing to take on more risk when appropriate, as long as that risk is in line with our cyclical and secular views of the world or appropriate on a security specific basis. Our objective is to deliver positive long-term returns throughout the entire economic cycle.

Our ACTIVE management approach is fundamental based and is both TOP-DOWN and BOTTOM-UP. We focus on top-down analysis such as developing our thesis as it relates to the global and domestic economy, government and political implications, demographics, risk and opportunities by industries and subsectors. We regularly screen thousands of companies for investment opportunities based on dozens of measurements of operational performance and valuation. This is complemented by our bottom-up analysis that looks at specific company business models, strategies, and management teams. We analyze financial statements, review SEC filings, earnings reports, Wall Street research reports, earnings estimates, and recommendations. We compare this against our own earnings outlooks and valuation analysis, and determine the main catalysts that drive valuation of the company. For securities that pass our top-down and bottom-up analysis, we determine the potential upside and downside risk reward scenarios before we add the security as a holding to one or more of our strategies.

Our Blue Water team meets on a regular basis, often daily, to discuss various aspects of our portfolio holdings and updated outlooks and thesis. We monitor our security holdings daily and discuss risks and opportunities on a security specific and asset allocation level basis. We make timely adjustments where needed in order to manage risks and returns.

Our goal is to build conviction in our portfolio holdings and constantly monitor changes that impact our investment thesis. We believe that our foresight, integrity, and your direct access to our local professional portfolio managers set us apart from other firms.