Investment Management
Introduction
Bay Colony Advisory Group is a private investment advisory firm, located in Concord, Massachusetts and Ocean Ridge, Florida. The firm is run by four Registered Investment Advisors who collectively oversee assets of approximately 54 million dollars for individuals, corporations, and non-profit entities. Since the firm’s founding in 2000, Bay Colony Advisory Group's investment approach is risk-based and has mirrored successful academic endowment models followed at many well-respected institutions, such as Harvard and Yale. The basic premise of the endowment model is to carefully control risk. The difference between our approach and traditional money managers is that we attempt to protect and build wealth both when the market is going up or down. Bay Colony Advisors believes that we are in a very challenging investment environment that will persist for some time. We pride ourselves on the close working relationship we establish with our clients as well as our philosophy of being a "hands on" investment advisory firm. This enables us to make timely suggestions to satisfy the needs of our clients.
Bay Colony Advisors investment committee applies two levels of active management, with portfolio allocation decisions across stocks, bonds, and sub asset classes determined by Bay Colony Allocation group, led by John Ohl, and implemented by Bay Colony's seasoned and institutionally oriented portfolio management team.
The team seeks to identify and exploit mispricings among all investable asset classes based on a belief that asset classes can become grossly overvalued or undervalued and revert to fair value. The committee takes a cautious approach to portfolio reallocations, waiting for asset class valuations to move to extremes before making large portfolio allocations. Finally, the committee recognizes that markets are inefficient and the mean reversion process can take years to play out.
Bay Colony Advisors pursue absolute real returns through a flexible, active approach that allows us to choose what we believe are the most appropriate registered investment vehicles or real assets based on the current economic environment. We apply dynamic allocation methods with the construction of a diversified mix of securities, seeking to outpace the rate of inflation over a full market cycle. Only registered securities that meet Bay Colony Advisors strict criteria are chosen. The benefits we offer to investors are numerous, including active risk management and diversification through low correlated portfolio holdings.
The Discovery Process
We discuss with the client their personal goals and investment risk tolerance to establish a written Investment Policy Statement. Clients are asked to complete a written Risk Profile Questionnaire before the Investment Policy Statement is completed. Both the Investment Policy Statement and risk tolerance evaluation are reviewed annually.
Portfolio Structure
Once the structure of the portfolio is determined, our advisors design a customized portfolio according to the written parameters of the client.
Bay Colony Advisors offers a fee-based asset management program through Bay Colony Advisors, a registered investment advisor. This independent asset management program enables investors to pursue their financial objectives with the purchase and sale of stocks, bonds, and no-load and select load-waived mutual funds without transaction fees or commissions. With the right balance of investment products, we can assist you in designing a custom-tailored portfolio to achieve your personal objectives. The program investment minimum is $ 250,000. Included in the program are unlimited trading, full account protection (SIPC), consolidated statements & quarterly performance reports.
Bay Colony Advisors provides clients with independent third-party performance reporting from AssetBook, Inc. [Sample Client Asset Management Report]. This independent reporting company provides clients with easy to read portfolio management reports online, and in hard copy, once a quarter. Reports include consolidated statements, IRR and TWR, realized and unrealized gain/loss, asset allocation, and portfolio performance. Gain/ loss reports minimize the administrative demands of preparing schedule D reports for taxes. Data from AssetBook is updated and reconciled daily.
Fiduciary Responsibility of a Registered Investment Advisor
Registered Investment Advisors are fiduciaries and they are held to the highest standards of professional integrity, conduct and competency. Please be advised that Brokers are not held to these same high standards. There are no hidden costs to worry about. In short, the fee-based arrangement offers investors the opportunity to get more service out of their money and insures that their interests are best aligned with those of their appointed Investment Advisor.
