At Abridge Enterprises, our approach to investment is fundamentally built around the preservation of capital.
We believe that successful investing over the long-term is dependent on maintaining the value of wealth in the face of increased costs of living. Traditional 'buy and hold' investment strategies have, over the years, served the long-term investor a degree of success, however as we progress through the current economic cycle, investors are faced with decisions of uncertainty as markets are exposed to frequent moments of volatility with little to no forewarning.
As an offsetting mechanism to volatile markets, Abridge Enterprises focus on an investment ideology that is based on the delivery of absolute returns. We treat as an absolute measure of risk assumed for investing with our firm. We find that the majority of relative investment managers are too highly focused on beating the performance of a general market.
With this in mind if the general market declines by 20 percentage points, the investment manager with a relative market focus who is down 16 percentage may be satisfied to be 4 percentage points ahead of the market. However in this instance, the investor may not be particularly satisfied to learn that his or her investment capital has eroded by 16 percentage points.
Risk free rate of investment
Our focus on absolute returns assumes a risk free investment rate when total capital is held in cash. We assume this as any investment places a degree of risk upon invested capital. As such, a focus on delivering absolute returns, irrespective of market conditions, must provide a return in excess of the risk free rate assumed.
Whilst we must appreciate that this approach is easier to achieve in a positive market than it is in a negative market, the results are less exposed to volatile movements, reduce the risks of sudden permanent loss and deliver a stronger return over the long-term relative to a more traditional investment approach.
Speak to an Abridge Wealth Advisor today to discover how Abridge Enterprises can help to maximise your investment potential and to help realise your financial goals.
Our Wealth Advisors are experience across a number of financial disciplines and are able to tailor a solution to satisfy your financial requirements.
Whether your portfolio is in need of balance and structure, or you wish to diversify your assets more efficiently, an Abridge Wealth Advisor will guide you towards a more prosperous financial future.
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