The Power of CLS Investments: A Look at Their Unique Risk Budgeting Approach

You’ve heard the buzz about CLS Investments, but what’s the real story? As an investor, you’re always on the hunt for opportunities that offer solid returns and stability. CLS Investments might just be the answer you’re looking for.

CLS Investments, a leading player in the investment world, has been making waves with its innovative approach to portfolio management. Their strategies have been turning heads and have many investors curious. But before you dive in, it’s crucial to understand what sets them apart.

This article will shed light on the ins and outs of CLS Investments, giving you a clearer perspective. So, whether you’re a seasoned investor or just starting out, you’ll find valuable insights here. Stay tuned as we unravel the world of CLS Investments.

CLS Investments

CLS Investments, an Omaha-based company, stands as a leading Registered Investment Advisor (RIA). The company’s services encompass portfolio management for investment companies, pension, and profit-sharing plans. Notably, CLS Investments sits under the umbrella of NorthStar Financial Services Group, a well-recognized multi-boutique asset management firm.

The company distinguishes itself through its ‘Risk Budgeting Methodology.’ This system guides CLS Investments in designing and managing diverse portfolios. Whether it’s funds, exchange-traded funds, or separate accounts, CLS Investments tailors investments according to the risk tolerance of each investor. This targeted approach aligns the investor’s goals, risk tolerance, and investment timeline, leading to more significant long-term returns.

How CLS Investments Operates

Functionality at CLS Investments revolves around one key element – Risk. The company follows a unique Risk Budgeting Methodology to spearhead its portfolio management services. This method requires a thorough understanding of an investor’s risk tolerance. Following that, the company allocates a specific risk budget to each investor.

Distinctly, the process carries out in three steps:

  1. Profiling the Investor: Evaluating the investor’s risk tolerance, investment goals, and timeline.
  2. Risk Budgeting: Determining the amount of risk the investor can (or is willing to) take on.
  3. Implementing the Portfolio: Allocating assets that align with the investor’s risk budget and goals.

These guidelines, combined with CLS’s investment philosophy of ‘Risk Budgeting,’ ‘Factor Investing,’ and ‘Global Diversification,’ enable clients to enjoy maximized returns with minimized risk.

Advantages of CLS Investment Services

The distinct advantages provided by CLS Investment Services form a strong premise for their standing as a reputable investment advisor. Extensively, it’s the company’s commitment to diversified portfolios and active risk management that sets it apart from competitors.

Diversified Portfolios

The first advantage lies in CLS’s approach to portfolio diversification. CLS’ investment process allows for a wide variety of assets to be included in your portfolio. For instance, equities, fixed income securities, alternative investments, and cash equivalents are all options. These diverse portfolio alternatives add up to a more balanced spread of risk and potential reward for you, taking into account your particular investment goals and risk tolerance. In 2020, Morningstar, a renowned investment research firm, acknowledged this robust portfolio diversification strategy of CLS, citing it as a key strength.

Active Risk Management

Another significant advantage of using CLS Investment Services comes from their active risk management. With CLS, it’s not just about investment returns, but also how much risk you’re taking to achieve those returns. The company’s unique ‘Risk Budgeting Methodology’ ensures that your portfolio stays within your personal risk budget. Investment risk is closely monitored and managed, fostering a portfolio resilient to market volatility. In 2019, the Financial Times recognized CLS as a top U.S. Registered Investment Advisor, partially due to its effective risk management strategies.

CLS Investment Services caters to your individual needs through strategically diversified portfolios and dynamic risk management tactics. Combined, these advantages facilitate the potential for successful, personalized investments in the long term.