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Investment Philosophy

At YHB Investment Advisors, we believe that well constructed portfolios designed to meet clients’ investment objectives are the best way to achieve long-term financial goals.  Our investment philosophy encompasses the following principles:

• Disciplined Investment Strategies: Client relationships begin with a complete review of each client’s current situation and goals. We assist our clients in establishing clear priorities and realistic investment objectives through a detailed discussion of the client’s expectations, risk tolerance, income needs and special requirements. We then design an investment policy that creates an efficient combination of risks and expected returns. This information, documented as the “Investment Policy Guidelines” for each client, becomes the blueprint for all subsequent investing decisions.
• Asset Allocation: Once appropriate ranges are established, the exact mix of assets at any point in time is based on our assessment of the current relative attractiveness of each asset class.  Then, once our best security ideas are identified, we apply portfolio construction disciplines that help produce the combination of those factors that represent the optimal balance between expected excess return and risk.
• Portfolio Management: We assess each client’s financial situation, needs and priorities and develop a comprehensive portfolio management plan tailored to each one.  Our customized portfolios consist primarily of individual stocks and bonds, and in certain cases related funds, that are carefully researched and selected through a rigorous analytical process.
• Diversification: A diverse portfolio is a key tool to enhance portfolio returns while also managing and reducing risk.  Our goal is to deliver strong, long-term results by building portfolios with attractive securities that complement each other. The result is well diversified portfolios tailed to clients’ needs.
• Risk Management:  In setting investment strategy, we believe in taking risks only when accompanied by attractive reward potential. We precisely articulate the reasonable risks we are willing to take and those that we are not, and we carefully avoid taking unintended risks.
• Long-term Approach: We pursue a longer-term, buy and hold investment discipline.  We are substantially fully-invested at most times.  While we reject the concept of market timing, we do recognize that the fear/greed cycle is a powerful, emotional force that creates opportunities for investors.
• Expense Management: We recognize the benefits of the power of compounding with the historically attractive returns in the capital markets, and manage portfolios in an efficient manner to minimize taxes and transaction costs.  YHB is a fee-only advisory firm, and our success is directly linked to the success of our clients.