Our Investment Strategies

Focusing on What Can be Controlled
Team-Based Portfolio Management
Winning by Not Losing
Tactical, Rigorous Investment Management

Sierra’s investment strategies seek to achieve are engineered to navigate periods of volatility, with disciplines that help limit the impact of any sustained decline in any individual holding on your overall portfolio. Volatility will always be an element of investing in the stock and bond markets. Bear markets can destroy wealth.

Sierra’s team-based management seeks to achieve the return goals of each investment strategy and limit downside risk utilizing our rules-based tactical investment disciplines. The team meets daily to review each holding in every account to act on Sell signals and to reach a consensus for buy decisions. This collaborative team-based approach ensures that the best investment ideas are brought before the team for consideration.

Sierra’s rules-based, risk-limiting investment process incorporates a trailing-stop on each holding reviewed daily. When the price of a holding declines past our proprietary stop level (a Sell signal), we sell and move the proceeds temporarily into a money-market fund. The purpose of trailing-stops is to limit the impact of any sustained decline on your overall portfolio.

Sierra’s investment team meets daily to determine the tactical adjustments to holdings and asset allocation in response to market changes. This component of the investment process enables the team to navigate through both rising and adverse market environments.

Sierra’s team-based management seeks to achieve the return goals of each investment strategy and limit downside risk utilizing our rules-based tactical investment disciplines. The team meets daily to review each holding in every account to act on Sell signals and to reach a consensus for buy decisions. This collaborative team-based approach ensures that the best investment ideas are brought before the team for consideration.

Sierra's rules-based, risk-limiting investment process incorporates a trailing-stop on each holding reviewed daily. When the price of a holding declines past our proprietary stop level (a Sell signal), we sell and move the proceeds temporarily into a money-market fund. The purpose of trailing-stops is to limit the impact of any sustained decline on your overall portfolio.

Sierra’s investment team meets daily to determine the tactical adjustments to holdings and asset allocation in response to market changes. This component of the investment process enables the team to navigate through both rising and adverse market environments.


Investment Strategies to Grow and Protect Wealth

Sierra’s comprehensive investment programs are engineered to meet your overall investment goals. We pursue positive results through market cycles and are laser-focused on limiting downside risk. Our tactical investment disciplines were developed with the goal of limiting downside risk to 5%, even in a down month or quarter while producing satisfying long-term investment returns.

We construct portfolios based upon each client’s specific investment objectives and long-term outlook. Explore the intricacies and results of our investment programs below:

Conservative Allocation Program
California Municipal Bond Program
High Yield Corporate Bond Program
Municipal Bond Program
Strategic Income Program
Tactical Bond Program

*Although Sierra believes its risk-mitigating disciplines will continue to limit the impact of major market declines, no assurance can be given that these goals can be consistently achieved in the future.

Conservative Allocation Program

Ideal for investors seeking global diversification in a variety of asset classes.

The Sierra Conservative Allocation Program has two investment objectives: to provide long-term total return and to limit volatility and downside risk. The Program’s multi-asset diversification strategy employs unusually broad diversification across asset classes, markets, industries and issuers. A passive “buy and hold” strategy is not employed. As part of an integrated risk-management discipline, the Program monitors underlying holdings daily and applies a trailing stop discipline to each holding, based on a proprietary approach, to limit the impact of any sustained decline in a given asset class or holding. The overall asset allocation of the Program is not fixed. It can and does change significantly over time, re-allocating the portfolio in response to trend changes in the U.S. and global economy and in various investment markets.

California Municipal Bond Program

Ideal for high income tax bracket investors seeking California and Federal tax-free yield.

The Sierra California Municipal Bond Program seeks to produce satisfying long-term returns while limiting downside risk. Returns are created from interest income and increases in bond prices. The interest income from municipal bonds is tax-free at the federal level. California municipal bond interest is also tax-free at the state level, providing a valuable benefit for California clients. The Program diversifies a client’s account among at least four (often up to ten) California (and sometimes national) municipal bond mutual funds. Each holding is monitored daily. A proprietary stop-loss discipline is implemented with the goal of limiting drawdowns. The Program will be fully invested when there are many Buy signals and will, at times, be fully in cash when municipal bond mutual funds are showing sell signals.

High Yield Corporate Bond Program

Ideal for investors seeking higher returns than traditional bond strategies.

The Sierra High Yield Corporate Bond Program seeks to produce satisfying long-term returns while limiting downside risk. Returns are created from interest income as well as increases in bond prices. The strategy diversifies a client’s account among at least four, often up to ten, high yield corporate bond mutual funds that are expected to generate returns superior to a simple high yield corporate bond benchmark. Each holding is monitored daily, and during significant declines, the team implements a defensive stop-loss discipline with the goal of limiting drawdowns. The Program will be fully invested when there are many Buy signals and will, at times, be fully in cash when the universe of mutual funds are showing Sell signals.

Municipal Bond Program

Ideal for high federal income tax bracket investors seeking federal tax-free yield.

The Sierra Municipal Bond Program seeks to produce satisfying long-term returns while limiting downside risk. The interest income from municipal bonds is tax-free at the federal level, providing a particularly valuable benefit for clients in relatively high tax brackets. The strategy diversifies a client’s account among at least four, often up to ten, municipal bond mutual funds. Each holding is monitored daily, and during significant declines, the team implements a defensive stop-loss discipline with the goal of limiting drawdowns. The strategy will be fully invested when there are many Buy signals and will, at times, be fully in cash when the universe of municipal bond mutual funds are showing Sell signals.

Strategic Income Program

Ideal for conservative investors seeking a diversified portfolio of income-producing asset classes.

The Sierra Strategic Income Program seeks to achieve satisfactory Total Return – income and capital appreciation – over each market cycle while limiting drawdowns, an approach that has in recent years been called absolute return. It is a globally diversified strategy, with asset allocation tactically adjusted to reflect changes in the economic and market cycles. The Program invests in a diverse selection of mutual funds to access a wide range of income-oriented asset classes. A stop is placed under each holding that rises as its price rises, and the holding is sold when the price declines below the stop to limit drawdowns even during periods of severe market declines. There are no set proportions or limits for the Program’s allocations.

Tactical Bond Program

Ideal for investors seeking higher returns than traditional bond strategies, but with greater diversification than the Sierra High Yield Corporate Bond Program.

The Sierra Tactical Bond Program seeks to produce satisfying long-term returns while limiting downside risk. It uses a tactical approach to move between three uncorrelated asset classes: High Yield Corporate Bonds, U.S. Treasuries, or Cash. Tactical Bond Program accounts are diversified among typically eight or more High Yield Corporate Bond mutual funds. When each underlying High Yield Corporate Bond mutual fund hits its sell point, we will move the relevant assets temporarily into a long-term Treasury bond fund, provided the Treasury fund is in an uptrend, until the next set of Buy signals in the High Yield Corporate Bond funds. If the Treasury fund is not in an uptrend, we will instead move temporarily into a money market fund until either the High Yield Corporate Bond funds or Treasury fund gives an new Buy signal.

Laser Focused on Tax Advantaged Investment Strategies

As a specialist in working with high-net-worth clients, we understand the importance of investing in a tax advantaged way, and offer options to help you reach your goals.

MUNICIPAL BOND PROGRAMS

Particularly beneficial to those who fall within a high federal tax bracket. In addition to being exempt from federal income tax, the income from municipal bonds may also be exempt from state income tax if the investor purchases securities issued by your home state or by municipalities located in your home state.

Municipal Bond Programs

PRIVATE PLACEMENT VARIABLE ANNUITY

A tax-deferred investment that provides a wide array of mutual fund investment options, instead of the very limited menu available in most other variable annuities. Tax-deferral of all investment gains until withdrawals are taken which is not required before the age of 95.

Available to accredited investors and qualified purchasers.

Private Placement Variable Annuity Fact Sheet

DONOR ADVISED FUNDS / CHARITABLE GIVING

Provides you with an immediate tax deduction for contributions that may not be distributed to a charity until months or years later.

Continues your commitment to philanthropy – noted as the third most important priority for those with a net worth of $1 million or greater*

*Source: Investopedia

Donor Advised Fund / Charitable Giving

Once we have determined your investment history, goals, and risk tolerance, together we select one or more of our investment programs to meet your needs.


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