Active Management Strategies

Investment Management

“I am personally not comfortable with the risk associated with buy-and-hold investing in my own portfolio. If I can’t tolerate that kind of volatility and uncertainty, I certainly cannot expect my clients to.”

– Paul Schatz, President, Heritage Capital

There are many financial advisors out there who would like to handle your investment management.  But not all have the goal of making you money.  Many simply strive for average returns.  That “passive investing” strategy sounds good in theory, of course, and works well when the market goes up for years.

The problem lies here:  we’ve been through 11 years of market gains.  Every up stock market (“bull” market) is then followed by a down market, where stock prices fall (“bear” market).  This is cyclical, so it’s like knowing that winter follows fall and fall follows summer.  It’s not just likely that winter will arrive; it’s a given.

When the market falls (like it did in 2008, and in other bear markets), you’re told to “stay the course”.  It’s all part of that buy and hold mentality.

Unfortunately, when you’re approaching retirement, or already retired, that can be the worst possible advice.  You can be forced to withdraw money and lock in your paper losses into real capital reductions, never to return.

Instead of buying and holding, you should be preserving what you have, and then carefully pursuing gains when appropriate.

Asset and Strategy Diversification

When it comes to investing, there’s no one “perfect” system or approach.  Markets go through cycles.  They evolve and change over time.  The strategies that work today may not work next year or even next month.

So what do you do?  Our approach is to diversify; not only your holdings but also your strategies.

That way when some of your strategies are losing, others will be winning.  You can achieve balance.

Returns through all parts of the business cycle

Most investors, amateurs and professionals alike, naturally play offense.  But when the next bear market strikes, many are caught unprepared.

We use unemotional, quantitative systems to help alert us to changing market conditions.  At that time, we shift your holdings so you can be either more offensively or defensively positioned.

Yes, it is more work than just letting your money move with the market.  But in our eyes, you can’t afford less.

See us On Business Television

We’re known for our unique approach to managing your money.  Our Chief Investment Officer, Paul Schatz, frequently appears on business television channels such as CNBC, Fox Business News, and Yahoo Finance explaining our unique philosophy.

Frequently Asked Questions

Can I learn more about your specific investment strategies?

By utilizing a variety of active, top-down strategies, our mission at Heritage Capital is to provide clients with strong returns throughout the full market cycle. Our clients benefit from “strategy diversification” as well as asset diversification.

Conservative Investment Strategies
Balanced Investment Strategies
Capital Appreciation Investment Strategies
Aggressive Investment Strategies

Will you do a buy and hold strategy for me if I prefer?

Yes, we will upon your request.  However, we prefer not to.  Static investing, in our opinion, has far too much risk and few ways to limit the impact of significant market downturns.  We don’t want that, and we don’t want that for you, either.  But we’re happy to discuss your needs and help find the right strategy for you.

What types of accounts will Heritage Capital manage for me? 

Individual, corporate, municipal, small business, estate, trusts, and approved retirement plans.

Are accounts always 100% invested in equities?

No. Heritage Capital’s proprietary computer models occasionally identify periods when overall market risk far outweighs potential market rewards, at which time assets are moved to the protection of money market funds or fixed income.  We also have strategies that are fixed-income based, that will never be invested in equities.

Our approach is to diversify; not only your holdings but also your strategies.

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