Investment Forensics Toolbox & Process

Too often clients switch investment firms and brokers without having a true understanding of what they have in their portfolio and what they need. We developed the investment forensic division to help, in a completely unbiased way, clients determine if their holdings match up to what their true specific long-term goals are.

The world of personal investing is flooded with a bewildering mix of half truths and conflicts of interest. Even worse, the vast majority of people are ill-equipped to navigate through the muddy waters of investing, so they turn to investment professionals seeking professional assistance. However, the vast majority of these investment professionals have little to no training on structuring portfolios, and therefore lack the knowledge to minimize risk while maximizing returns in the portfolios they manage.

We at Chapwood Investments want to educate investors so they are able to objectively and dispassionately analyze portfolios for their strengths and weaknesses, to truly understand the fees they are being charged, and most importantly provide investors full transparency into their investments and portfolios. We want to empower investors with knowledge because, ignorance is not bliss, it’s simply investment suicide.

We will demonstrate quantitatively and qualitatively proper portfolio construction, using statistical measures that are not arguable. We will show you what makes a portfolio work and what does not. We pride ourselves in our ability to show how fees such as investment, management and commissions can increase your overall variance drag tax on your portfolio and how over time it erodes away at your overall portfolio value and purchasing power. We assist investors to spot issues with their portfolios that are most often times missed.

We pride ourselves in educating investors on the risks they are currently taking and are able to quantify and reveal it to them. We can statistically express what type of risk you are taking in your portfolio. What is the probability of loss in a portfolio in any given 12-month timeframe?  We can show you with a 99% certainty what amount of money is at risk in a given 12-month time period. What is acceptable amount of risk and will be able to show you how to reduce/lower your risk.

You must look before you leap. You must know what you need and if what you have satisfies your investment policy statement. Below are some of the tools we have designed that help us determine in objective manner if what you have is what you need. It’s that simple. We are happy to do a complementary analysis on your current holdings in person or in real time through a video conference so you can see with your own eyes how good your current portfolio is.

Your current advisor wishes you never came to this site because it may expose the fact that they lack the knowledge to correctly structure and manage your portfolio. The world of personal investing is flooded with a bewildering mix of half-truths, conflicts of interest, and pure nonsense. Even worse, the vast majority of people are ill equipped to navigate through the muddy waters of investing, so they turn to investment professionals who have little training on structuring portfolios, and therefore lacks the knowledge to minimize risk while maximizing returns. Investment Forensics was formed to objectively and dispassionately evaluate your current portfolio’s structural strengths and weaknesses, to show exactly where people are being overcharged, and most importantly, to bring investors out of the dark.

The lack of transparency and information in the marketplace, especially within portfolio-management, has allowed all companies, big and small, to take advantage of investors for too long.

Investment Forensics is committed to changing this trend by empowering investors through knowledge. Ignorance is not bliss; it is expensive!

  • The relationship between your portfolio’s standard deviation versus its rate of return
  • What your variance drag phantom tax is
  • How much risk you’re taking in your investment and the probability of a loss based on historical data over the next 12 months
  • How much money you would lose if there was a downturn in the market over the next 12 months
  • How variance drag is dramatically affecting your compounded returns
  • Your Sharpe Ratio: what it is and what it means for your portfolio
  • Precisely where your hidden fees are hiding
  • A correlation matrix of the assets within your portfolio

…And gives you the knowledge you need to determine if your money is being invested efficiently.

The reason this question is so important is that it shows if your advisor truly understands how to manage risk in your portfolio. If they answer the question correctly then we can do an analysis to see if they’re following what they know to be the right mixture of investments for your pre-determined risk tolerance. If they don’t know the answer, which most don’t, then you know you’re involved with someone who shouldn’t be managing your portfolio.

Answer: Your standard deviation should be between 70-80% of your historical rate of return. High correlations between assets will inevitably create an undesirable ratio between your standard deviation and historical rate of return. You must evaluate portfolios over a 7 to 10 year horizon.

Reach Out

If you’re ready to talk, please take a moment to call or send an email!