Our Approach

Goals-based investing featuring integrated risk management.

We Manage to Goals

At Sierra, our focus is on providing innovative investment solutions for conservative investors whose primary objective is to preserve capital and achieve a fair rate of return.

Bear markets can destroy wealth. Our first priority is protecting your capital from painful setbacks. In doing so, we will also focus on generating satisfying returns over the years ahead. This approach has created a robust track record that has affirmed our position as a trusted partner to investors nationwide.


Integrated Risk Management

At Sierra, risk management is equally as important to us as it is to our clients. In 1987, co-founders Kenneth Sleeper and David Wright developed an innovative investment approach with the goal of protecting client assets while providing them satisfying investment returns. Our investment philosophy was conceptualized from a deep understanding of the capital markets and extensive market research. In the daily management of our clients’ portfolios, every decision we make is guided by our two goals of limiting downside risk and providing satisfying investment returns. Our approach utilizes an integrated set of risk management disciplines:

UNUSUALLY BROAD DIVERSIFICATION
UNUSUALLY BROAD DIVERSIFICATION
MUTUAL FUND SELECTION
DAILY MONITORING

In our diversified programs (Customized Accounts, Conservative Allocation and Strategic Income), Sierra analyzes and uses a wider variety of Asset Classes (investment categories) than most investment managers. We screen for, and select, well-managed mutual funds for investment in your accounts that realistically target attractive average annual total returns.

  • U.S. and foreign stocks
  • Commodities
  • Currencies
  • Ultra-short-term bonds
  • U.S. government bonds
  • Floating rate instruments
  • Municipal bonds
  • High-yield corporate bonds
  • High-grade corporate bonds
  • Emerging market bonds
  • Bonds of European countries
  • Real Estate Investment Trust (REIT) common and preferred stocks

In our single asset class programs (California Municipal Bond, Municipal Bond, High Yield Corporate Bond and Tactical Bond), diversification is achieved by selecting a variety of mutual funds within the asset class reflecting different styles and manager expertise.

Sierra rigorously analyzes a broad universe of asset classes to identify those which demonstrate positive trends. Sierra then screens all available mutual funds within upward trending asset classes to identify top-performing funds based on our time-tested methodology. Their long-term track records and consistency in managing risk are thoroughly evaluated before inclusion in client accounts.

Unbiased Decision Making

Sierra does not receive any commissions or rebates so that we can objectively select the most skillfully managed mutual funds within each productive asset class.

Remember, bear markets can destroy wealth. Sierra monitors each mutual fund in your account daily, and when necessary, applies our proprietary risk-limiting techniques. Sierra strives to preserve your capital and limit your exposure to downside risk.

Our risk-limiting disciplines are well-proven, and are similar to trailing stops. A predetermined formula for each asset class defines the trailing stop price below each mutual fund holding. If the price declines more than a normal fluctuation for its asset class, the fund is sold and the proceeds are moved into cash to temporarily preserve capital and gains. We then determine when to buy back into the asset class, or upgrade the position to a different one.

By responding deliberately to actual changes in market trends, as they occur, we are able to limit exposure to significant market declines, offering a degree of downside protection not available with traditional buy-and-hold strategies.

 


Our Strategies

Our unique investment approach is accessible through a variety of tactical investment strategies designed to target solid returns and strive to achieve low downside risk, so that you feel calm and confident in your investments.

 

 

 

 

 

Who We Serve

For more than 30 years, Sierra Investment Management has been helping people across the country to preserve and steadily grow their wealth. Our clients are conservative investors, often retirees, who have a minimum of $1 million in investable assets.

Like us, our clients favor a conservative approach focused on limiting risk and preserving their hard-earned wealth. Looking for a way to make their wealth last a lifetime, they turn to Sierra to achieve satisfying investment returns and to provide strong downside protection. Striving for positive investment outcomes and providing personalized service and support, Sierra offers our clients peace of mind.