Our Process
At Lanier, we believe that portfolios designed to deliver superior performance and lower correlation with the overall markets must decrease reliance on stocks and bonds and be complemented with a set of diversifying strategies and private investments. Our Multiple Asset Class Strategy (MACS) utilizes three major asset classes: stocks, hedge funds and private senior living investments. Exposure to each asset class is driven by risk tolerance, income needs and other factors unique to each client.
MACS Objectives
MACS strategy objectives are to provide highly competitive return and risk profiles. Specifically:
- Versus the S&P 500, our strategies attempt to deliver higher returns and lower risk and correlation to the S&P 500.
- Versus a standard 60% stock / 40% bond mix, our strategy targets a significantly higher return with similar levels of risk and correlation to the market.
Who Can Invest?
- To invest in Diversifying Strategies / Hedge Funds as well as investing in Private Investments / Senior Living, one must be an accredited investor.
- Minimum investment is $100,000 per fund for both hedge fund managers and Lanier Senior Living Fund Series.
- There are typically two funds in the Lanier Senior Living Fund series per year.
- We currently have access to seven excellent hedge fund managers.
I. Stocks
Stocks continue to play a vital role in investment portfolios, providing long-term growth albeit with significant volatility along the way. While we believe projected returns for stocks will be lower than historic returns, we still target 7-10%/year over long-term investment cycles.
A well-diversified stock allocation continues to be a key component of the Lanier MACS.
II. Diversifying Strategies / Hedge Funds
- Hedge funds are an important part of sophisticated investors’ portfolios, as they can increase return, reduce volatility, have lower drawdowns and much lower correlation to the market.
- Unlike the more efficient asset classes (particularly domestic stocks), historic performance has been a very solid predictor of future performance in the inefficient hedge fund class.
III. Lanier Senior Living Fund Series (LSLF)
The LSLF series provides an excellent alternative asset opportunity in real estate. Annual rates of return have historically been in the 15-25%+ range depending upon the level of risk which includes ownership structure, investment model, project size, developer and operator. Investing in multiple funds over time provides investors excellent diversification by developer, operator, geography and more. There are currently four investment models in the LSLF that have different risk/return profiles:
