At Zemenick & Walker, Inc., we take a diversifying investment approach that focuses on asset allocation, manager due diligence, and portfolio analysis.  Beginning with each client’s initial meeting, the importance of asset allocation is emphasized.  Without exception, the investment management process revolves around a mutual approval of defined asset allocation ranges and targets.

In the equity markets, we look to prudently allocate our clients' capital in all sectors of the market.  That includes large cap, small cap, value, growth, domestic, and foreign sectors.  This diversification presents the best possible opportunity to achieve superior risk adjusted equity returns in the portfolio.  To achieve this diversification and exposure, we conduct a thorough research and review process of equity managers that includes front end due diligence, extensive ongoing monitoring, and a continuous search for new managers.

Fixed income securities, on the other hand, are purchased in-house on an individual basis after considering the client’s tax rate, state residency, and income and liquidity needs.  Our focus is to build fixed income portfolios that avoid or greatly minimize credit risk, thereby developing a “safety net” for our clients.  With this focus in mind, a laddered fixed income portfolio is constructed for each client, whereby securities mature periodically throughout each year.  Such an approach ensures that portfolios meet clients’ cash flow requirements thereby increasing the chances of achieving long term goals.  Our traders search for bonds on a daily basis from a wide range of sources, negotiating the lowest possible commissions and maximizing yields.  Our clients also benefit from the efficiencies created by the high volume of purchases.  In a typical quarter we purchase between $25-$35 million of fixed income securities. Such leverage is not available to the typical individual investor.

Apart from equities and fixed income, we also focus on alternative asset allocation.  These assets tend to have low correlation to traditional equity markets.  Although alternatives have historically had a reputation as “risky” investments, we look to add relatively low cost and adequately transparent alternative assets to decrease portfolio volatility and increase risk-adjusted returns.