HOME
OUR FIRM & OUR PHILOSOPHY
SERVICES
INVESTMENT METHODOLOGY
STRATEGIC BUSINESS ALLIANCES
SERVICE COMMITMENT & FEES
PARTNERS
ASSOCIATES
IN THE NEWS
ADV & PRIVACY POLICY (PDF)
CONTACT US

INVESTMENT METHODOLOGY

Beaumont intentionally has no “niche” or “style box” into which clients are placed. Rather, we construct each portfolio only after gaining a thorough understanding of client objectives (including the priorities and timing there of), current and projected investable assets, tax status, risk tolerance and other pertinent factors.

We believe that proper asset allocation is the single most important variable in achieving strong long-term performance. After determining the appropriate allocation of assets, we implement sector decisions and individual actions designed to generate performance results that will achieve or surpass the goals of our clients.

Instead of using the traditional asset allocation model of “Cash-Bonds-Stocks”, Beaumont utilizes the Dominant Benefit Theory which places all investments into one of four categories based upon the dominant characteristic of each investment.

Safety: The principal is at an extremely low level of risk of loss. Risk and commensurate reward are low, there is limited appreciation potential. Examples include savings accounts, certificates of deposit and fixed annuities.

Income: Relatively high current income is the major characteristic. While principal risk and or appreciation/depreciation exist, the dominant benefit is the income produced by the security. Examples include all types of bonds, preferred stock and income partnerships.

Growth: Capital appreciation potential is the dominant characteristic. Any income paid is relatively low and a secondary benefit. Examples include common stocks with dividends and mutual funds containing growth stocks. Principal is at risk of loss.

Aggressive Growth: The dominant benefit is the significant potential for capital appreciation. No income is paid on these types of securities and the risk of loss to the principal is significant. Examples include non-dividend paying stocks, aggressive growth mutual funds, securities concentrating on one sector and initial public offerings.

By utilizing this approach we feel we are better able to match client’s portfolios with their goals, risk tolerances and time horizons.

Beaumont directly manages assets and may selectively recommend external specialty managers. A portfolio’s specific structure is based upon a variety of factors including: client objectives and risk tolerance, agreed upon target asset allocation, tax efficiency, inherited holdings and portfolio size.

Beaumont performs ongoing broad, top down economic analysis designed to identify sectors and/or trends having above average promise. Once identified, we seek the best investment vehicles available within them and invest accordingly. Given our long-term relationship orientation, we avoid market timing and other high-risk alternatives. Rather, we favor sound, quality investments in asset classes and individual securities that present a favorable risk reward relationship and that appear to have strong long term prospects.

Client assets are typically held in custody at either a leading brokerage firm and/or at a large mutual fund complex. We maintain a limited power of attorney to execute transactions. In addition to favorable access to top quality research, these affiliations provide clients with favorable trading costs, cash management flexibility and internet access to account information. With the exception of Nationwide Variable Annuity and 401K products, Beaumont receives no financial compensation from our custodians. Registered representative business is offered through Purshe Kaplan Sterling Investments, Member NASD/SIPC. Headquartered at 18 Corporate Woods Boulevard, Albany NY 12211.