An Example of Asset Management Our Clients Appreciate

Larsen Financial

Active Asset Allocation

Examples of Some Other

Investment Management Styles We Have Seen

Guiding Investment Strategies, Principles, and Practices

Research and Data Tracking

Asset Allocation Adjustment and Re-balancing

Risk Parameters

Risk Monitoring

Asset Class

Exposure

Asset Class

Weightings

Determinations of asset class weightings are set based on prevailing levels of risk as opposed to arbitrary, static allocations.

Asset allocation changes are made personally, as needed, not just based on a calendar quarter or other automatic criteria.

Positions are given a range of acceptable price variation from the date they are purchased.  All effort is made to prevent significant losses from any and all positions in the account.

Decisions regarding the prevailing levels of specific risk, sector risk, and market risk are made on an ongoing basis to determine if client risk tolerance is in alignment with the present portfolio composition.

Our method causes rotation away from investment categories with potential for high-risk/low-return in favor of those asset groups with potential for low-risk/high return.

Researching and monitoring the markets is typically outsourced to third parties outside of the financial adviser’s control.

Allocations are typically re-balanced on a calendar quarter or other arbitrary interval, often done using computer algorithms.

Risk management is typically assigned to passive diversification methods. Using the passive concept of Modern Portfolio Theory, coupled with the age of the investor, allocations are established using historical relationships to define the expected risk level in a portfolio.

Market risk is typically considered mitigated by diversification alone.  This implies constant exposure to the predetermined market subsets of the allocation.

Typically a computer model determines the various asset class weightings which remain constant until the next re-balance date.

Re-balancing systematically based on arbitrary time intervals such as calendar quarter or semi-annually causes the purchase of under-performing asset groups and the sale of better performing asset groups.

Speak with us today about our Active Allocation Strategy

Austin

(512) 487-7790

San Antonio

(210) 340-2109

info@larsenfm.com

As your investment manager, we watch the market every day.  We observe market data on 40 U.S. industries, 40 foreign countries or regions, world currencies, fixed income markets and commodities.