Our Approach to Investments

Our disciplined approach seeks to filter through short-term noise and emotion in individual stocks and bonds. Instead, we focus on where we can add the most value: interpreting research and scientifically designing portfolios. We follow a consistent investment process – one that clients can understand and stick with, even in challenging market environments.

 

We believe that everyone’s portfolio strategy should be based on their own investment objectives, personal interests, and core values. As a result, we do not have a “right” portfolio, but use a wide range of approaches to create personalized portfolios for each client. Our global investment team ensures that portfolios are built for each client’s unique needs.

Our Approach to Investments

We believe that everyone’s portfolio strategy should be based on their own investment objectives, personal interests, and core values. As a result, we do not have a “right” portfolio, but use a wide range of approaches to create personalized portfolios for each client.

Our global investment team, based in the U.S. and Hong Kong, ensures that portfolios are built for each client’s unique needs.

ETF Strategies

Funds and ETFs1 provide diversification2 that single stock portfolios can’t. We first identify the portfolio goal, then desired market exposures, and ultimately the best funds and ETFs with those exposures. Quality and explainability of performance, total cost, liquidity, tax and structural implications, and manager transparency are key.

 

These portfolios fall into 3 broad categories:

  • Core ETFs: Global diversification at low cost allows investors to “set and forget” their exposure. Customized for clients’ risk tolerance, tax and currency objectives. Managed to participate in markets and seek improved returns via style and thematic tilts over a full market cycle.
  • Thematic ETFs: Specific themes without concentrated bets. Typically used to complement exposure elsewhere and not driven by clients’ risk objectives. These portfolios provide specific exposure for high-conviction views.
  • Active and Alternatives: Some investment goals cannot be accomplished via stocks and ETFs. In such instances, we turn to Closed End and Private Funds for market access. Contact us to see if such strategies are suitable for you.

Single Stock Strategies

We believe markets are mostly efficient and spotting one-off mispricings is a fool’s errand. Easy and instant access to information makes it all but impossible to pick the right individual stock at the right time. A systematic investment approach is required to take advantage of the minor inefficiencies that do exist.

 

Ours follows a three-step process:

  1. Identify the Universe: Define the portfolio’s objective and identify stocks that fit into the relevant universe.
  2. Apply a Consistent Framework: Don’t ignore investment principles to include a popular stock. Systematically rank the universe via a 30-factor framework that includes Valuation, Quality, Safety, Payout, Technical, Sentiment, and of course, ESG, measures.
  3. Build and Maintain: Select the highest-scoring stocks to get desired regional and sub-sector exposures. Qualitatively adjust for areas that systematic screens cannot capture. Review the universe, stock rankings and rebalance regularly.1

Alternative Strategies

We utilize alternatives to improve the risk/return profiles of client portfolios. Alternatives allow investors to take advantage of an illiquidity premium, the ability to go long/short and access investments not available in public markets. When done right, with costs managed and underlying exposures and risks understood, alternatives can improve long-term investor outcomes.

 

There are two main ways we work with clients on alternatives:

  • LEO Multi-Manager Approach: Our investment team conducts ongoing due diligence and maintains an approved buy list across private credit, private equity and hedge funds. Clients can allocate to a portfolio of managers, diversifying risk, and simplifying admin while we ensure the managers are fit for purpose.
  • LEO Advice Approach: Often clients come to us with specific allocations or managers in mind. In these cases we assist with due diligence, review vs industry peers and provide guidance so that clients can make informed decisions driven by data, rather than relationship or marketing materials, on their own.

Investment Strategies

Investment Strategies

Strategy Type
Tax Status
Asset Class
Geography
Currency

Global Equity ETF

A core, globally diversified equity strategy that uses ETFs to own the market at low cost. A standard bearer for time in market, rather than timing the market - this strategy is at the core of many of our clients' portfolios.

Global Equity ETF (US Tax)

A core, globally diversified equity strategy that uses ETFs to own the market at low cost. A standard bearer for time in market, rather than timing the market - this strategy is at the core of many of our clients' portfolios.

US Focused Equity ETF

A U.S. tilted core portfolio made up of diversified holdings to provide exposure to a wide array of asset classes, with an emphasis placed on maximizing growth.

Global Brands

Exposure to large and stable household names globally – high-quality companies that have proven, over time, to be able to preserve and grow their global earnings base.

Global Equity Income

Large cap global equity portfolio that offers above-average dividend income and defensive characteristics.

Asia Leaders

A high conviction stock portfolio targeting leading Asian stocks. As Asia transitions from an export manufacturing hub to a global driver of consumptions, Asia's leaders today may become the global leaders of tomorrow.

US Brands

Exposure to large and stable household names globally – high-quality companies that have proven, over time, to be able to preserve and grow their global earnings base.

US Equity Income

Large cap U.S. listed equity portfolio that offers above-average dividend income and defensive characteristics.

Global Balanced ETF

A core, globally diversified ETF strategy to own the market at low cost. 75/25 risk vs income assets. Focus on time in market, rather than timing the market.

Global Balanced ETF (US Tax)

Broad participation in global risk assets such as stocks, bonds and commodities.

US Focused Balanced ETF

A U.S. tilted core portfolio made up of diversified holdings to provide exposure to a wide array of asset classes.

Commodities

A diversified allocation to commodities, to provide an inflation benefit and to diversify from traditional stock and bond exposures.

Expert and Personal Financial Guidance

We offer a personal, calculated plan for your finances. Get in touch to learn how we can help support your family’s future and build a richer life.

Expert and Personal Financial Guidance

We offer a personal, calculated plan for your finances. Get in touch to learn how we can help support your family’s future and build a richer life.

DISCLOSURES

The information provided is for educational purposes only. The views expressed here are those of the author and may not represent the views of Leo Wealth. Neither Leo Wealth nor the author makes any warranty or representation as to this information’s accuracy, completeness, or reliability. Please be advised that this content may contain errors, is subject to revision at all times, and should not be relied upon for any purpose. Under no circumstances shall Leo Wealth be liable to you or anyone else for damage stemming from the use or misuse of this information. Neither Leo Wealth nor the author offers legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results.

This material represents an assessment of the market and economic environment at a specific point in time. It is not intended to be a forecast of future events or a guarantee of future results.

Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

Not associated with or endorsed by the Social Security Administration or any other government agency.

A 529 plan is a college savings plan that allows individuals to save for college on a tax-advantaged basis. Every state offers at least one 529 plan. Before buying a 529 plan, you should inquire about the particular plan and its fees and expenses. You should also consider that certain states offer tax benefits and fee savings to in-state residents. Whether a state tax deduction and/or application fee savings are available depends on your state of residence. For tax advice, consult your tax professional. Non-qualifying distribution earnings prior to 2024 are taxable and subject to a 10% tax penalty. Beginning in 2024, unused 529 plan funds may be rolled into a Roth IRA assuming the following conditions are met: 1) must have owned the 529 plan for 15 years, 2) can only convert funds that have been in the 529 plan for at least 5 years, 3) rollover amount cannot exceed $35,000 and 4) rollovers must be made to a beneficiaries Roth IRA.

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