Optimal’s March 2019 rebalance of our client’s custom portfolios   

To ‘lift the curtain’ a bit on how we manage our clients’ portfolios, today (March 6) we implemented our quarterly rebalance of all our accounts. These rebalances are done in a tax-efficient, dynamic manner, reflecting changes in the market and in each account.

  • For taxable investors, we rebalance the equity strategies in the most tax-efficient way possible, which focuses on realizing long-term capital gains
  • For our clients who have set risk controls (which includes a floor designed to protect your account from sustained market declines):

o    We re-adjust to assure that changes to each account value are reflected in the mix of stocks and bonds (in addition to monthly check-ins if a significant move occurs mid-month)

o    We re-adjust the Treasury bond ETF durations to make sure the duration of each accounts’ bond investments matches your time horizon. This duration matching assures that each portfolio is “immunized” against changes in interest rates

For those interested in hearing more about how our portfolio management process is conducted to manage our clients’ assets, please do not hesitate to contact me and I can walk you through it in whatever detail interests you. ☺

Monty Joshi is Portfolio Manager at Optimal. Optimal Asset Management is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended.

Monty Joshi, CFA

Monty Joshi, CFA has an MBA from the Haas School, UC Berkeley and a BA (Econ) from the University of Chicago. He has served in various of investment-related roles such as risk manager with the Chicago Board of Trade, equity options trader with Hull Trading (now part of Goldman Sachs), long-short hedge fund manager, and pension consultant with AD Biller and Associates. Previously, he managed finance/operations for several start-up companies in Silicon Valley.