Our Approach
Our investment philosophy and process are guided by the following themes:
Downside protection and upside participation
We believe that downside protection and upside participation provide our clients with the highest probability of preserving and growing their wealth.
Dampen risk through allocation and diversification
We aim to decrease risk through strategic asset allocation and diversification. Further, we attempt to provide opportunities for outperformance via tactical allocations.
Asset allocation serves as primary driver
Asset allocation is the primary driver of long-term returns. Manager and strategy selection within the allocation is a close second.
Active management is our foundation
Our actively managed Coho Relative Value Equity strategy is the foundation of our portfolios. We are advocates of active management; however, passive strategies complement portfolios as appropriate for certain exposure.
Cash flow through dividends and income
We believe cash flow through dividends and income is an important determinant of performance, and we emphasize this major element when prudent.
Adherence to our investment discipline in all market cycles
The markets will experience short-term dislocations and drawdowns which are uncomfortable, but normal occurrences in markets. Adherence to our investment discipline is paramount during these cycles.
No market timing; time in the market
We do not believe in market timing, but rather believe time in the market allows the best probability of success.
Core equity philosophy
We firmly believe that the best way to create long term wealth is to:
- Protect principal in down markets; and
- Generate competitive returns in all but the most cyclical or speculative up markets.
Where protection and participation meet®
We strive to generate a specific, asymmetric pattern of returns over time with a portfolio that demonstrates a down-market capture considerably less than its up-market capture.
By creating an intersection of protection with participation, we provide an opportunity for better-than-market performance over an economic cycle with less-than-market risk.
Our goal is to create significant alpha over time versus benchmarks and peers through the combination of losing less than the benchmark during bear markets and performing near the benchmark in bull markets.
- Our firm is an institutional asset manager with nearly $7B in firm assets. Coho’s flagship strategy, Coho Relative Value Equity, approximately $3.7B in assets.
- We leverage our seasoned, institutional talent and robust resources.
- Implementation of this strategy gives us clarity and conviction with the philosophy, process, and approach.
- We gain greater insight on portfolio construction as well as increased efficiency of implementation.
- We control costs to our clients through direct investment in the Coho Relative Value Equity strategy, versus other investment vehicles.
Asset information is as of 3.31.24
Asset allocation
We stress the importance of finding the right asset allocation when building your investment strategy. Focusing on asset allocation means determining how best to divide your portfolio among different asset classes:
EQUITIES (Stocks) can provide a high opportunity for return, but with greater risk
FIXED INCOME (Bonds) can provide modest returns, with lower volatility (fluctuation)
ALTERNATIVES can provide asymmetric returns and unique investment opportunities
CASH provides the lowest opportunity for return, but has the greatest safety
Management decisions contribute to a portfolio’s performance
Source: Gary P. Brinson, L. Randolph Hood, and Gilbert L. Beebower, Determinants of Portfolio Performance, The Financial Analysts Journal.