Investment Philosophy

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My Investment Approach

My approach to investing has been crafted through the years by my curiosity to know and understand each client’s past, present, and future aspirations for themselves and their families. As a financial advisor there is no greater privilege than to help clients manage their financial wellbeing and affluence. Subsequently, I believe it is incumbent that I leverage the entirety of Wells Fargo Advisors in helping manage my client’s prosperity.

No one plans to fail, they simply fail to plan!

Leveraging the intellectual capital found throughout Wells Fargo Advisors has allowed me to employ an investment planning process that helps uncover and bridge any financial gaps prohibiting my clients and their families from securing financial completeness. I have subsequently found that this comprehensive discovery phase of our relationship not only allows us to delve deeply into understanding their current wellbeing but also helps uncover and identify their financial dreams.

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As a byproduct of this client centric consultative process, we derive a risk-based asset allocation model constructed with an estimated probability of achieving each client’s financial goals. The entirety of the information shared with me allows me to then study, test, analyze and develop investment strategies that are customized to help fit their personal situation and objectives. As warranted, I then suggest tactical allocation adjustments, or investment manager changes, given market conditions, legislative actions, or client life transitions including within their families.

Modern Portfolio Theory, the essence of Asset Allocation

Sitting at the core of my investment philosophy is Modern Portfolio Theory, otherwise known as means-variance analytics, which is a mathematical framework for assembling a selection of investments such that there is an optimal expected return for a given level of risk, as measured by the portfolio’s standard deviation. First advanced by Nobel Prize Laureate Harry Markowitz in 1952, my approach to his hypothesis forms the cornerstone to each client’s strategic asset allocations as derived from our investment planning process. There being an efficient frontier for various diversified portfolios ranging from a low variance of risk to aggressive, I attempt to manage towards sustainable long-term performance over full market and economic cycles on behalf of each client.

Managing the Risk Paradigm

2020 08.21 iStock Web Photo Hour Glass Optimized_opt _1_.jpgBearing in mind that diversification by itself does not guarantee a profit nor will it protect against investment loss in declining markets. In essence, asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns, hence it goes without saying that investing involves risk, including the possible loss of principal.

Putting investment risk into perspective, I like to utilize to the game of baseball as an analogy given every player never wants to make a fielding error, and while at bat, also wants to avoid a strike out. Much like baseball, hitting a lot of singles and doubles, avoiding errors and trying our best to avoid striking out goes a long way to achieving long-term financial success for investors.

Occasionally, we may hit an investment home run but in reality, doing the simple things well goes the longest way to achieving long-term success. Crafting a high-quality portfolio centered around a strategic asset allocation, occasionally rebalancing the portfolio, hiring high quality managers, avoiding chasing “hot” stocks and finally, tactically moving to where the investment ball is heading, and not where it has been, are all part of a high-quality comprehensive risk mitigation strategy

To learn more about my investment philosophy, or my nine wealth management disciplines and lifestyle continuity process, please feel free to contact me for an initial conversation, or to schedule a private briefing together.

2020 09.21 CFH headshot 101x124 _opt.jpgChristopher F. Hunter, ChFC®
Vice President - Investment Officer
1401 North Magnolia Ave. Suite 1401
Orlando, FL 32803
Call 407.649.6026