Our Specialties
In addition to David's strengths in the areas of top-down, value investing in equities as well as conservative, income-oriented investing, he is able to add value for his clients by being a specialist in three distinct areas:
1. Risk Management, Capital Protection and Yield Enhancement Strategies
We believe that it is esential for Investment Advisors to be able to protect their clients' wealth in today's uncertain world.
In terms of risk management, and as part of a portfolio protection strategy, David is able to select Protective Puts for our clients' portfolios. To be sure, capital markets can be volatile, and David aims to offer his clients greater peace-of-mind by selecting, where appropriate, common shares of Canadian and International companies that are option-eligible.
David is also able to generate further income for his clients' portfolios by writing Covered Calls. Unlike interest income, which is taxed at the investor's marginal tax rate, and unlike Canadian dividends, which are eligible for a dividend tax credit, the income earned from option premiums is treated as capital gains*. We believe these strategies are more conservative than simply owning the underlying equities in your portfolio as they may protect your downside or may generate tax efficient income. Additionally, for our sophisticated clients, David is also able to implement advanced equity options strategies.
*The comments included in the publication are not intended to be a definitive analysis of tax law: The comments contained herein are general in nature and professional advice regarding an individual's particular tax position should be obtained in respect of any person's specific circumstances. In addition, trading in equity options may not be suitable for all investors.
2. Equity Hedge and Monetization Strategies
Equity hedge and monetization strategies are structured to meet the needs of high net worth clients with concentrated equity exposure. Working with our team of investment banking specialists, David is able to offer those clients who are looking to either hedge (reduce single stock risk) or hedge and monetize (reduce risk and raise cash) their equity holdings with innovative tax and risk management strategies.
If you are company executive, founder, insider, or investor holding a large position in a single stock, where an outright sale of the position is not desirable due to significant tax consequences, David would be pleased to discuss suitable and inexpensive equity monetization and hedging strategies with you.
3. International Investments and Non-Traditional Investments
With Canada constituting only 3% of the world's stock market capitalization, we believe it is prudent for investors to enhance their returns and reduce their risk through international diversification. Depending on your objectives and tolerance for risk, David is pleased to be able to recommend a wide range of investments, including foreign currency bonds for investors with liabilities in another currency; American Depository Receipts (ADRs); Global Investment Funds; and Country and Regional Exchange-Traded Funds (ETFs).
Moreover, depending on your unique circumstances, investment objectives and tolerance for risk, David is also able to offer qualified and accredited sophisticated investors a wide range of alternative, non-traditional investments that have historically provided superior, uncorrelated returns. These may include access to private placements for early-stage companies principally in the natural resources sector that are either publicly-traded or privately held.