ABE believes that risk comes in two forms: not understanding the intricate details of the investment and how the specific risks associated with that investment either overlap or offset the risks associated with other investments in the client portfolio.
ABE attempts to manage these risks through both its extensive proprietary research by focusing on three key behavioral tenets:
- Achieving financial goals is a marathon and not a sprint
- Diversifying to manage risk is the only reason to diversify
- Missing an opportunity is preferable to losing client capital
The graph below illustrates how the ABE Strategy performed compared to the S&P 500 during all of the annual periods (on a rolling 12-month basis) where the S&P 500 declined in value. Across roughly 50 periods, the average decline for the S&P 500 was 17.8% whereas the ABE Strategy had an average annual increase of 1.8%.