We are a boutique wealth advisory firm with a unique focus on equity risk management strategies. Our innovative approach is engineered to enhance return profiles, liquidity, and tax efficiency while dramatically reducing portfolio volatility. We offer total wealth management for individuals and families, and volatility management for self-managed investors and institutional clients.
Whether saving for retirement or living off your portfolio, minimizing losses is the key to superior return outcomes.
This chart is constructed solely to illustrate the hypothetical investment gains required to recoup investment losses and should not be construed as actual, backtested, or anticipated returns for Fort Point Capital Partners, LLC.
The timing or sequence of returns is the least predictable and, consequently, the biggest variable in defining investment success. If your retirement, or spending years, start off in a bear market your lifetime compounded return experience can be materially impaired with exhaustion of your capital base being a very real possibility. By contrast, a risk-managed portfolio can fare well in both bear and bull markets.
This chart is designed to show the hypothetical effects of options overlay strategies during a market cycle that starts bearish and eventually turns bullish. This is not actual Fort Point or market performance information.
While more people are nearing retirement than ever before, the rates of return on standard “safe” investments such as bonds are currently negative after accounting for the impact of inflation.
Volatility is the only real asset class. While you may believe that you own a “diversified” portfolio, it is likely that you have exposure to a variety of asset classes that have in the past and will likely in the future experience a severe, coordinated loss event.
Consistent and predictable outcomes require both broad-based diversification and options strategies that firmly mitigate risk, in effect, treating volatility as an asset class. We seek to improve portfolio returns by managing risk.
By limiting your losses even slightly, you can outperform over time without capturing 100% of the upside market moves. This is accomplished by creating return asymmetry — trading some upside participation in exchange for an unequal downside protection benefit. It is through this return asymmetry that consistent investment success can be realized.
This chart is intended to show hypothetical risk and return metrics for an investor who uses options overlays to effect his/her overall market performance capture ratio.
Even if your average annual return is the same every year, over the course of 20 years you’ll see that a less volatile portfolio substantially outperforms a more volatile one.
These returns are hypothetical, constructed to illustrate the impact of volatility, and should not be construed as actual, back-tested, or anticipated results for Fort Point Capital Partners LLC.
We take a totally integrated portfolio approach in which all decisions are made in the context of the aggregate portfolio. The goal is to achieve extensive diversification across many return sources, with each portfolio component “big enough to matter, small enough not to hurt.”
Volatility control is a core objective, not an abstract concept. Volatility exposes portfolios to more frequent and deeper periods of negative returns, requiring greater amounts of positive portfolio performance to recover. Specifically, we use option overlay strategies to actively manage portfolio risk and deliver a source of reliable alpha in uncertain markets.
The best time to reduce exposure is when an asset is expensive and risk seems low. The best time to increase exposure is when an asset is cheap and risk looms large. Easy to say, yet hard to do in the absence of a structured, systematic, objective investment process.
Fort Point was formed in 2008 on the belief that the traditional wealth advisory and asset management industry is broken. Our team has been curated to deliver a unique experience defined by investment excellence through superior risk control, exceptional service and attention to detail.
Reach out to us for a demo, an analysis, or just a conversation. We look forward to hearing from you.