STATEMENT OF VALUES
Eleanor Roosevelt is credited with the timeless insight that we would be wise to learn from the mistakes of others because we don’t live long enough to make them all ourselves. Too many of us prefer to ignore the wisdom of those who have gone before us, and learn the same lessons over and over the hard way.
Armed with a healthy knowledge of human nature and psychology, we are no longer surprised by our own frequent episodes of hubris, overconfidence, attribution bias, various logical atrocities, or any number of other equally destructive cognitive foibles. Nor are we particularly shocked by the negative consequences that inevitably arise from these shortcomings. They are a fact of life for all humans, and we come by them honestly. These genetic qualities were, after all, forged in the crucible of a dark and dangerous past where careful and unemotional problem solving was necessarily subordinated to activities which furthered our need to feed and shelter ourselves, and avoid predators.
Unfortunately, many of the instincts and heuristics, which served us so well on the ancient veldt, work at cross-purposes to our long-term goals in modern society. It is fortunate, then, that there are ways to short-circuit the destructive behaviors of our “lizard brains.”
The first step is – as always – acknowledgment.
Much has changed for our team over the years. We’ve made research and education central to our ongoing process of self-evaluation and improvement. Further, we’ve made many of our lessons available to the entire world – for free – on our blog, Gestaltu.com. But perhaps most importantly, in managing investments for clients and holding ourselves to the highest standard of care, we have come to stand for something square and real, a true Iron Law of Wealth Management:
We would rather lose half of our clients during a raging bull market than half of our clients’ money during a vicious bear market.
Winston Churchill once observed that “[People] occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened.” We hope that won’t be the case for you. But we understand that the most important course corrections in life often result from crisis, and that, unfortunately, thoughtful self-analysis and pensive reflection are rarely catalysts for meaningful change. Change is motivated by emotion, not logic, which is why you might find it difficult to change the way you think just from reading what we’ve written here.
But some of you might already be on the verge of change, carrying with you the emotional scars of a turbulent and ongoing battle with the markets. If so, there’s a decent chance that you lost faith in the traditional investment process some time ago, and have struggled to find an alternative.
Well, we’re here for you. Let’s forge a new path together.
MICHAEL PHILBRICK, CIM®, AIFP®
Mike has over 25 years of experience in investment management, including nine years as a Portfolio Manager. He is currently one of the Portfolio Managers for the ReSolve Adaptive Asset Allocation Fund, the Horizons Global Risk Parity ETF, and ReSolve’s managed accounts. Prior to co-founding the ReSolve in 2015, Mike was a Portfolio Manager at Dundee Private Wealth, Richardson GMP and Macquarie Private Wealth. Mike also served as Branch Manager at Scotia McLeod, Richardson GMP and Macquarie Private Wealth. Mike is co-author of the book “Adaptive Asset Allocation: Dynamic Global Portfolios to Profit in Good Times – And Bad” (Wiley, 2016), and many investment related articles and whitepapers. Mr. Philbrick graduated from Carlton University with a degree in Economics, and has earned both Chartered Investment Manager® and Accredited Investment Fiduciary® credentials.
ADAM BUTLER, CFA, CAIA
Adam has 10 years of experience in investment management, including 7 years as a Portfolio Manager, and holds both CFA and CAIA charters. He is primarily responsible for research efforts related to the management of investment portfolios. He is the lead author on several public research whitepapers. Adam worked as a Portfolio Manager at Richardson GMP and Macquarie Private Wealth and as an Investment Advisor at BMO Nesbitt Burns. Subsequently, Adam, along with his partners, Mike and Rodrigo, continued to evolve their quantitatively focused investment methodology as a Portfolio Manager at Dundee Goodman Private wealth before launching ReSolve Asset Management. Adam’s work is published on ReSolve’s research blog, GestaltU.
RODRIGO GORDILLO, CIM®
Rodrigo is a Co-Founder, Managing Partner and Portfolio Manager of ReSolve Asset Management and has over 11 years of experience in investment management. He has co-authored the book Adaptive Asset Allocation: Dynamic Global Portfolios to Profit in Good Times – and Bad (Wiley) as well several whitepapers and research focused on adding new insights to the quantitative global asset allocation space. Rodrigo began his career on the institutional side with John Hancock before transitioning to the ultra-high net worth space at a boutique wealth management firm. Subsequently, Rodrigo, along with his partners, Mike and Adam, continued to evolve their quantitatively focused investment methodology as Portfolio Managers at Macquarie Private Wealth and Dundee Goodman Private wealth before launching ReSolve Asset Management in 2015.