Invest Using Our Profit & Protect Strategy
Fairport advises investors regarding allocations in their 401(k), IRA, and other investment accounts.
Following our “Profit & Protect” investment strategy, we rely on proprietary research to analyze the relative strength of funds in your plan and then determine:
(1) Whether to be 100% invested in equity markets (U.S. and/or international) or 100% in fixed income.
(2) When invested in equities, the specific funds expected to outperform in the near term.
We update and convey this advice quarterly (or more often in volatile markets) to investors who then execute reallocations directly with their plan provider or custodian -- either by telephone or online.
The asset classes we analyze and rank reflect those offered in most 401(k) plans. They include:
--U.S. equity funds (large/mid/small cap funds, sector funds, growth/value/blended funds)
--International equity funds (developed international markets and emerging markets)
--Hard asset sectors (basic materials, real estate)
Our preference is for low-cost mutual funds, index funds, or ETFs when available. Fixed income allocations generally are to money market funds, stable value funds, or high-quality bond funds.
If at any point during a quarter the S&P 500 closes down 9.5% from its highest value during the current (or previous) quarter, we will recommend that clients shift assets to a money market fund. We will remain on the sidelines until our proprietary indicators signal a re-entry into equities.
What’s the difference between Fairport’s Strategy and Traditional Portfolio Management?
Traditional Portfolio: Pre-determined asset allocations, like 60% stocks and 40% fixed income.
Fairport’s Strategy: No pre-set allocations. Can invest 100% in equities or 100% in fixed income. Objective: maximize gains, minimize losses. Individualized to accommodate plan investment choices.
Traditional: Periodically sells winners, reallocates to underperformers - simply for the sake of rebalancing.
Fairport: No rebalancing. Sell underperformers, add to winners & research for outperformers.
Contact us for a free review of your investment accounts and learn how our Profit & Protect strategy can help you.