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Nauset’s investment approach is based upon Tactical Asset Allocation which is the art of opportunistically investing in under-valued asset classes (i.e. U.S. stocks, international stocks, bonds, cash) by harvesting investments from fully- or over-valued asset classes.  Futhermore, Nauset is driven by empirical research in each step of the investment process from asset allocation to portfolio structure to investment implementation.
  
 
 
   
nauset capital management believes in the following principles:
         
 
  Asset Allocation is paramount to long-term wealth creation  
Academic studies have shown that asset allocation is responsible for 94% of portfolio investment returns whereas market timing and stock selection account for just 3% each.  Therefore, Asset Allocation is the most important determinant in creating a successful long-term investment program.
 
 
  Markets are mean reverting  

Markets cannot go up in a straight line forever.  Security prices ebb and flow constantly depending upon whatever happens to be in favor at the time.  Nauset’s Tactical Asset Allocation strategy endeavors to “buy low and sell high” by recognizing and reacting to the cyclicality of investment markets.

  
 
  More important to identify macro-economic trends rather than guess the future of individual companies  
Since academic studies have shown that a company’s economic sector (i.e. energy, industrials, financials) is responsible for 74% of its stock performance, it is much more prudent to identify the drivers for an entire economic sector rather than guess at the drivers for individual companies.
  
 
  Passive investments (i.e. index funds) outperform active ones over the long-term  

Numerous academic studies have concluded that it is extremely difficult for actively managed mutual funds to outperform the market net of management fees.  Therefore, passively managed index funds are the best vehicles to achieve long-term investment success.

  
 
  Proper portfolio structure and management are essential  

Nauset’s “core-satellite” investment structure ensures that the majority (i.e. “core”) of the portfolio delivers asset class returns while “satellite” investments attempt to outperform the market.  In addition, investments are constantly monitored, rebalanced regularly, fully invested, and there is minimal trading.

  
 
  Align interests with those of clients  

Wesley’s personal assets are invested in the strategy as well as those of immediate family members.  In addition, the fee structure is investor friendly as Nauset charges substantially less than the average mutual fund and only shares in profits over and above those provided by the market.

  
     

 
This website is neither intended as nor does it constitute an offer to sell any securities to any person or a solicitation of any person to purchase any securities. Such an offer may only be made by the Partnership’s Confidential Offering Memorandum. It should not be assumed past performance is necessarily indicative of future returns. The value of investments and the income from them may fluctuate; investments are not guaranteed and investors may not get back the full amount invested.
 
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