GCS Asset Management Process Explained Through Baseball Analogy

Months before any player steps onto the field, the wheels are in motion to put a team together that can win championships.  Trades, the draft, minor league prospects, Spring training – a lot of work, needless to say.  For those that know a lot about baseball I know I’m oversimplifying this process, but it’s because we’re here to talk asset management, not sports so much.  

Opening day comes, the players take the field, but the work has just gotten started.  With each passing game managers / coaches watch their players to see if they are performing to the club’s expectations.  Hypothetically, let’s say, 15 games into the season the 3rd baseman isn’t working out as expected.  He’s batting under.200, averaging an error per game and has cost the team a couple of wins.  The manager may give him a little more time, but maybe not.  Remember, the expectation is to win a championship and they don’t have a lot of time to do it.  The manager finally decides to bench the 3rd baseman and brings in a player from the minor leagues who happens to be having an outstanding season.  Once again, this player, along with the rest of the team is monitored daily to make sure they are on track to play in October.

At Griswold Capital, this is precisely our approach to asset management.  We spend much of our time combing through daily / weekly watch lists looking for the best candidates for a portfolio. Many are called, but few are chosen.  Once a candidate makes it to the portfolio it is monitored daily / weekly.  It is given time to perform, but over time, if it fails to meet our expectations, it is eliminated for a better prospect.  The goal, ultimately, is to try and deliver a winning portfolio that provides good risk / reward over time, not based on a star system or some big Wall Street firm’s best ideas list, but on a trend following system that follows 615 parameters and 50 different rules – the institutional “footprint” if you will.

Securities offered through Regulus Advisors, LLC. Member FINRA/SIPC. Investment advisory services offered through Regal Investment Advisors, LLC, an SEC Registered Investment Advisor. Regulus Advisors and Regal Investment Advisors are affiliated entities. Griswold Capital Strategies is independent of Regulus Advisors and Regal Investment Advisors..  There are certain additional risks associated when investing in securities through our investment management portfolio strategies. Diversification and asset allocation strategies do not assure profit or protect against loss. Investing in securities (including the strategies advertised herein) involves risk of loss. Further, depending on the different types of investments there may be varying degrees of risk. Clients and prospective clients should be prepared to bear investment loss including loss of original principal. Because of the inherent risk of loss associated with investing, we are unable to represent, guarantee, or even imply that our services and methods of analysis can or will predict future results, successfully identify market tops or bottoms, or insulate you from losses due to market corrections or declines.