Our Clients
Finance Professionals:
Many of our clients are finance professionals. These people find many reasons to have another company make their investment decisions for them. One reason is that they tend to be very busy and, although they are very capable, they would rather focus on their careers than their own personal portfolio management. Another very important reason many financial professionals choose Cove Capital is that it eliminates any real or perceived conflicts of interest they may have. For example, if they are working on a research report of some security it would not be appropriate for them to be trading in those securities in their personal accounts. Cove Capital Management only takes accounts where we have discretionary authority and so the client would never look as if he/she had influenced our decision to invest. Additionally, finance professionals have very strict compliance procedures and these compliance departments are very comfortable, and in many cases most comfortable, having an asset manager select securities independently.
Non-Finance Professionals:
Some people don't consider themselves to be financially astute, particularly when it comes to individual security selection. As such, a traditional stockbroker may give them general advice and may not give them the attention they require. A growing number of people entrust their portfolio to asset managers and allow those decisions to be made by experts with many years of experience. It gives them the individual attention they deserve and the freedom to be as involved as they want.
Retirees:
Retirees, like many others, have wide spectrums of risk tolerance. We customize portfolios to accommodate whatever the particular client's risk tolerance is. For example, many retirees want little more than fixed income. We are fixed income experts. We understand the tradeoffs between interest rate risk and credit risk and we very carefully calibrate portfolios to fit our client's needs. People are starting to retire earlier and live longer and many retirees need growth as well as fixed income. We carefully select equity securities for these clients that provide reasonably good income with the prospect of moderate growth. When these are combined with the fixed income component it can offer a portfolio that can provide steady income to people through their extended retirement years. Of course, these accounts could be set up to distribute funds on a monthly basis as necessary or any other way that suits the client's needs.
People Starting Out:
People starting out are generally in the accumulation phase of their financial lives. These people may not have a lot of savings but recognize the value of starting an investment portfolio that they can build on over time as their needs change. These clients typically will look to invest in securities that are a bit more aggressive for more rapid growth. Cove Capital puts together portfolios that have a greater proportion of rapidly growing companies to accommodate their need for greater growth. These securities are blended with more conservative securities to produce a customized portfolio in accordance with the risk parameters of the client as well as their long term growth expectations.