Investment Management

Approach to Investing

At Radix Financial, we believe successful long-term investment outcomes are accomplished through focusing on the things we can control — minimizing fees, optimizing tax recognition timing, protecting against a loss of purchasing power, and avoiding emotional errors within a well-diversified portfolio.

Research-based philosophy

Our investment philosophy is broadly based on Harry Markowitz’s Nobel Prize winning Modern Portfolio Theory (MPT) which attempts to maximize portfolio expected return for a given level of standard deviation (risk) by efficiently diversifying across industries, market capitalizations, geographies, and asset-classes.

Portfolio construction

Our portfolio strategies are managed in-house using individual US large-cap and laddered fixed income securities paired with index ETFs to gain low-cost, tax efficient exposure to sub-asset classes. While we believe markets are generally efficient, Radix’s hybrid approach between active and passive management aims to capitalize on tactical opportunities at the individual company level.

Radix Financial does not market time or “pick stocks” in isolation, nor do we hire outside equity fund managers to do our jobs for us. While it is our objective to generate portfolio alpha through the combined exploitation of temporary security mispricings, tactical asset allocation shifts, selling covered calls, and individual tax lot harvesting, these margins disappear when overlaid with fees to outside managers. Therefore, each individual investment security is carefully researched and monitored in-house for it’s collective long-term growth potential within the context of the overall portfolio strategy.

Discretion

Client investment management accounts are managed on a fully discretionary basis, meaning our clients have granted us permission to place trades within their accounts without first obtaining their approval. Because of the long-term nature of the Radix’s portfolio strategies, portfolios are kept 95-100% invested at all times, regardless of market conditions, in accordance with the client’s overall goals, risk profile, and individualized investment policies. If regular withdrawals or higher liquidity needs are expected, cash balances are kept equal to at least six months of expected distribution amounts to minimize the risk of needing to sell at the wrong time.  

Long-term objective

All portfolios are managed with the objective of long-term growth and/or income over a full market cycle and should not be measured or evaluated over arbitrary short-term time periods for which we cannot control or predict the outcomes. While broad strategic asset allocations are maintained and strictly governed by the client’s individual investment policy statement, investment advisors are given the flexibility to tactically integrate forward-looking short and intermediate-term shifts within the allocation, in hopes of reducing risk and improving returns over different economic and interest rate environments.

 

Fees

Assets Under Management (USD)

Tiered Annual Fee (% of AUM)

$0 - $110,000 

1.10%*

        $110,000 - $2 million

1.00%

$2 million+ 

0.65%

$10 million+

negotiable

Option strategies (all AUM levels)

Additional 0.15%

*Subject to minimum fee of $100/month

Fees are deducted, in arrears, on a monthly basis, directly from the client account