Investment approach

Stability with compounding

At Spruce, we seek to adhere to three guiding principles - protect capital in down markets, generate competitive returns in up markets and strive to outperform over the full investment cycle. It's this absolute return-focused approach to investment management that we believe differentiates us from other advisors.

Beginning with you, we first develop an intimate understanding of your goals, such as capital needs, attitudes toward asset preservation and growth, liquidity requirements, risk tolerances, potential tax sensitivities and legacy concerns. Together, we develop a dynamic Investment Policy Statement that clearly outlines your specific investment objectives in keeping with these personal parameters. This statement stakes out the boundaries of your asset class preferences and return expectations.

Globally diversified portfolios

In conformity with this policy statement, we then construct your portfolio from the most appropriate public and private global market sources. By employing a combination of research-driven modeling, informed capital market assessments and objective experience surrounding the changing nature of risk environments, Spruce determines the impact of each candidate position on your entire portfolio prior to executing a trade. Portfolio adjustments are carefully evaluated from both a macro and technical research perspective.

A cross-pollination of investment themes often results in diversified portfolios consisting of multiple positions across a dozen or more asset classes, including, but not limited to:

Traditional Asset Classes

  • High-Income Securities
  • Currencies and Commodities
  • Taxable and Tax-Exempt Fixed Income
  • Global Equities

Alternative Asset Classes

  • Fundamental Long/Short Commodities
  • Global Long/Short Equities
  • Absolute Return Strategies: Event-Driven, Distressed, and Macro/CTA
  • Private Real Estate
  • Private Natural Resources
  • Private Equity and Growth Capital

Each component of your portfolio is monitored and analyzed to ensure its appropriate contribution to overall risk and return. Significant deviations from expected outcomes form the basis of portfolio adjustments that are made on a timely basis.

Risk managed with passion and vigor

Our access to alternative asset classes, particularly through emerging fund managers in largely inaccessible markets worldwide, often forms an important non-correlative component of our clients' portfolios. Spruce's due diligence process for manager sourcing involves both internal and third-party analysis.

Extensive stress testing, risk budgeting and proactive tail risk management across the complete portfolio is designed to lead to reduced drawdowns during difficult markets which, in turn, provides the basis for quicker recoveries and total asset growth during market upturns. Financial assets managed in this way compound at higher average rates of return over time and reach new levels of asset appreciation sooner.

Primary services

Spruce provides entirely customized investment solutions for each client based on their objectives. In every case, Spruce deploys a set of primary services in order to deliver optimum performance. Those services are:

  • Creation of formal Investment Policy Statement
  • Asset allocation, dynamic portfolio construction
  • Third-party asset manager sourcing, due diligence and tracking
  • Strategic access to established and emerging alternative managers
  • Sophisticated portfolio hedges and non-correlated investments
  • Risk management including stress testing, tail risk analysis
  • Daily drawdown analysis to manage liquid market risk during periods of heightened market volatility
  • Portfolio rebalancing
  • Consolidated performance reporting