OUR OFFERINGS
BROAD INVESTMENT CHOICES
​Virtue Capital Management has created an investment approach that emphasizes risk-managed portfolios designed to meet the specific needs and risk tolerance of investors by:
• Offering a full spectrum of flexible investment options.
• Focusing on risk management in today’s constantly changing markets.
• Evaluating the investment landscape from a unique 21st-century perspective.
Classic Portfolio Construction – The Active vs. Passive Divide
The standard approach to portfolio construction starts with determining a client’s goals and risk tolerance and then finding a diversified asset allocation with an expected return and acceptable risk commensurate with the goals and tolerance. The endpoint is typically an investment plan that outlines how much will be invested and diversified into each asset class.
How is the asset allocation itself determined? In practice, most advisors use what’s known as Modern Portfolio Theory (MPT) with portfolio optimizers, at least conceptually. The goal of MPT lies in holding various asset classes that have appealing returns, reasonable risk, and low
correlations to each other. The three factors: expected return, volatility, and correlations (or a full covariance matrix) are the building blocks of MPT.​
Tactical, Dynamic & Strategic Solutions
Broad Investment Options
Virtue Capital Management has built an investment platform that includes sophisticated and robust risk-managed strategies. Virtue offers a flexible and powerful range of investment options. Virtue’s proprietary strategies and separately managed accounts are designed to meet the diverse
needs of clients from conservative to moderate to aggressive. We offer both customized wealth management solutions and strategies from specialized money managers (sub-advisors) who pursue a complementary risk-managed philosophy.
This broad selection allows for effective long-term strategies customized to each investor’s specific risk/reward profile.
Risk-Managed Mythology Virtue’s approach is directed toward defending against the significant impact that large drawdowns
can have on the long term growth of an investment.
We develop and implement strategies focused on minimizing risk. Some of our strategies emphasize low correlation to broader volatile
market activity. This is achieved through hedged equity with the use of protective options, tactical strategies to dynamically adjust to market conditions, and other risk management practices.
Investment Strategy Diversification
We believe that diversification across multiple risk controlled strategies helps manage wealth for both performance and protection. While each
of our strategies has its own methodology and diversification, many incorporate some form of risk management to guard against large-scale losses.
Our strategies encompass conservative, moderate, and growth-oriented performance goals to offer a full spectrum of investment options to meet each investor’s tolerance for risk.
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Strategic, Dynamic and Tactical Investment Management
Strategic/Passive Asset Management calls for setting target allocations and then periodically rebalancing the portfolio toward those target goals as investment returns skew the original asset allocation percentages.
• The concept is closer in philosophy to a “buy and hold” strategy as it generally keeps the holdings
while reallocating, rather than an active trading approach.
• Of course, the strategic asset allocation targets may change over time as the client’s goals, risk
tolerance, and needs change and as the time horizon for major events, such as retirement and college
funding grow shorter.
• Strategic investing is a long-term investment approach where the manager is typically 100% invested
at all times regardless of what may be happening in the broad market or the sector/style class the
strategy invests in.
• Example – A strategic “Large-Cap” asset allocation would generally be invested in large-cap
investments even if the broad stock market or large cap itself was underperforming or losing value for an
extended period of time.
Dynamic Asset Management is a portfolio management strategy that frequently adjusts the mix of
asset classes to suit market conditions.
• Investing in the best performing asset classes striving to allow investors’ portfolios the highest exposure to momentum and to reap returns if the trend continues. Conversely, portfolios that use dynamic asset allocation reduces asset classes that are trending lower to help minimize losses.
• Dynamic asset allocation typically exposes a portfolio to multiple asset classes to help manage risk. Portfolio managers may make investments in equities, fixed income, mutual funds, index funds, currencies and or derivatives depending on the manager’s investment methodology. Top-performing
asset classes can help offset underperforming assets if the manager makes a bad call.
• Example – Dynamic asset allocation may be invested in let’s say four sectors of the stock market in January but at another point during the year may have sold all four of those sectors and replaced them with other sectors or another asset classes depending on the momentum of the sectors and the
methodology of the strategy. Dynamic Asset Allocation does have the flexibility to be 100% invested in cash during market corrections, although it may be at a slower pace than Tactical Asset Allocation.
Tactical Asset Management allows active portfolio managers the flexibility to quickly buy or sell different asset classes depending on market conditions. The goal for this allocation is to participate in market appreciation during bull markets while mitigating the impact of major losses during sustained
downward markets. Managers can invest in multiple asset classes and go “offensive/ risk-on” or defensive/ risk-off” depending on the stock market environment.
• These allocations are set at minimum and maximum acceptable percentages that permit the money manager to take advantage of market conditions within these parameters.
• Thus, a form of market timing is possible, since the money manager can move to the higher end of the range when equities “risk-on” are expected to do better and to the lower end when the economic outlook is bleak.
• Example – Tactical asset allocation may be invested in stocks when they are in an offensive “risk-on” posture or could be invested up to 100% in cash and or fixed income during periods of defense “risk-off” due to high market volatility depending on the methodology of the strategy.
Market Volatility is Rising - Are You Ready?
- Structured Notes Offering
FED INTEREST rates continue to rise trying to tame inflation; inverted yield curve continues to predict a recession, Fitch downgrades United States creditworthiness from AAA to AA+...
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Find out how alternative investments such
as structured notes:
• Mitigate Risk - offer 100% or partial downside
protection, while still providing the opportunity
to participate in the upside of the underlying
asset performance
• Enhanced Upside - Some Structured
Investments are designed to offer accelerated
returns or enhanced yield, giving investors
the possibility of greater upside returns.
• Define Outcomes – have formula-based
outcomes which can help increase investor
confidence and ease uncertainty
• Be Customized - Structured Investments may be
customizable to meet the specific individual needs
and financial goals of investors