Investment Philosophy

The principles that GCG employs in selecting investments are basic in that diversification plays a central role in risk management (as Dr. Markovitz said diversification is the only “free lunch” in investing).  On the liquid asset front, diversification and portfolio construction requires a good understanding of correlation and the shifting correlation effects that can come from stressed markets.  On the illiquid asset front, diversification comes from employing a variety of strategies that may exhibit price sensitivities to similar underlying economic factors, but on balance are reliant on very different fundamental factors in the determination of returns.  However, a key aspect of the GCG Investment Philosophy is that the era of Passive Investing and Passive Asset Allocation should be over if investors want to ensure the preservation of wealth.  Three equity market crises in the past 12 years (Asian market crash in 1998;  Nasdaq market crash in 2000-2001; and Global market crash of 2008) should have convinced investors that relying on markets recovering from crises in the “long-term” could mean that investors have to wait a very long time to receive their money back.  GCG aims to provide an investment solutions platform that will be able to withstand future crises that have become far too common to continue to be called “six sigma” events.

Gramercy Consulting Group LLC is a registered investment adviser in the State of Washington.  The adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration.   Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.