Investment Philosophy
The past decade has demonstrated that traditional buy-and-hold strategies may no longer offer optimal efficiency amid evolving global valuations and pronounced market volatility. At J.M. Arbour, we recognize the need for agility, eschewing rigid “fixed mix” allocations in favor of Tactical Asset Allocation, complemented by Strategic and Dynamic Asset Allocation models when appropriate.
Our Tactical Asset Allocation approach is actively managed, enabling us to adjust holdings in response to changing economic and market conditions. When an investment falls out of favor, we are prepared to divest and redeploy capital, often into cash, providing the flexibility to seek attractive entry points and manage risk dynamically. This disciplined rebalancing supports both risk mitigation and the pursuit of precise portfolio targets.
J.M. Arbour also offers algorithm-driven portfolios, common stock portfolios, and the more traditional Strategic Asset Allocation models. These diverse methodologies empower our portfolio managers to optimize asset class exposure across the global opportunity set and swiftly shift to cash when warranted.
Our algorithm portfolios consist of five distinct Tactical Asset Allocation models, each managed exclusively through ETFs and guided by proprietary algorithms. Unlike some of our other tactical strategies, these portfolios remain fully invested, leveraging non-correlated assets to mitigate risk rather than relying on cash positions. Risk is carefully monitored and managed through drawdown limits tailored to each portfolio’s risk tolerance.
Our common stock portfolios are designed to outperform benchmarks over a full market cycle, employing Dynamic Asset Allocation. This approach involves weighting portfolios to targeted asset classes or securities and rebalancing as needed to maintain intended exposures over the long term.
Regardless of investor profile, we emphasize owning assets priced with a margin of safety, those that trade below intrinsic value, and those which enhance long-term returns while preserving capital during periods of elevated risk. Capital preservation is a core priority; we do not hesitate to take defensive action when markets appear overvalued or risks outweigh potential rewards.
Investment Principles
At J.M. Arbour, our investment principles are not merely guidelines, they are foundational tenets that shape who we are, how we operate, and how we serve you. These principles govern every step: from investment selection and monitoring, to client interaction and communication.
Our core beliefs include:
You, our client, are central to everything we do
Our responses to your inquiries and needs are timely, clear, and precise
The planning and investment process should be educational, rewarding, and inspiring
The outcomes you experience must align with your clearly stated objectives
Our guiding investment principles include:
A rigorous, ongoing research process that supports disciplined investment selection and continuous monitoring
Employing a blend of Tactical (active), Strategic, and Dynamic management techniques tailored to your unique goals
A commitment to full transparency of holdings and performance, accessible through robust online platforms and detailed statements—reviewable in person with your advisor at any time
Regular, face-to-face meetings to reinforce our partnership, update you on progress, evaluate plan effectiveness, and enhance your overall experience
For more details or to speak directly with J.M. ARBOUR’S Chief Investment Officer, please call 207-248-6767 or email evan@jmarbour.com.