Pavilion believes that developing a strategic investment program, designed to enhance the long-term financial position of our clients, is key to performance success.
The core principles of our investment philosophy are:
- Focus on asset allocation – the most important investment decision
- Differentiate alpha from beta – incorporate high conviction active managers or alternative investments when appropriate, use passive strategies in efficient markets
- Enhance returns – tilt the portfolio to take advantage of market opportunities when the reward for doing so is expected to be justified
- Preserve capital in down markets – integrate risk management and productive diversification to avoid permanent losses of capital
- Develop a cost- and time-efficient portfolio structure – a long-term horizon and patience are important determining factors of investment success. Focus on decisions that add value; use index funds where the rewards to active management are low to minimize manager turnover and fees.
We overlay experienced judgment and creative thinking on top of our analytical work to arrive at thoughtful and customized recommendations for our clients. Whether structuring portfolios, engineering investment strategies or evaluating third-party managers, all choices are made only after careful due diligence and research.