All Investments Entail Risk

Dreher  Capital Management allocates financial assets and makes investment selections based on risk. The underlying belief in this philosophy is that through research it is possible to determine, at least on a relative basis, the risk of an investment. If this is true, investors can control the amount of risk they take by analysis and choice. The firm believes that additional control of investment risk can be accomplished through the use of diversification, which is also a cornerstone of the firm’s investment philosophy. The corollary to this philosophy is that through research it is NOT possible to determine rates of return. Accordingly, in managing investments, it is the firm’s job to help clients take risk efficiently(1).

1. Importantly, the firm does not believe this line of reasoning necessarily leads to indexing, nor does it preclude changing allocations based on perceived market conditions. And, while asset allocation can control investment choices under this philosophy, investment selection based on judgment is not inconsistent with the philosophy.