Tag: assets

A Note on Performance

After establishing Coroebus Wealth Management June 3, 2013, we began managing our bond portfolio in April of 2014. I have been advised not to offer my services based on market performance as capturing alpha is rare and past performance does not guarantee future results. That being said, we had a great year.

As the Federal Reserve Board remarks pivoted to a dovish tone, the commonly held benchmark Bloomberg Global Aggregate Bond Index returned 5.5% in 2023, following the bond markets worst year ever. As a passively managed strategy our portfolio returned 7.58% in 2023.

Although minimizing downside capture is key to long term performance, we believe volatility is a matter of tolerance rather than a pure measure of risk. Research supports portfolio managers capture enough alpha to pay themselves, and those who outperform their benchmark over a five to ten year period tend not to over the following period.

We won’t dive in to all of the risk metrics here as I would like to take a more behavioral perspective. As I reviewed monthly returns preparing for this post I noticed the strangest correlation between negative periods and having a generally poor state of being or mood. The anxiety of anticipating a decrease in cash flow may be a factor, we also accept anxiety is a cause of poor decision making.

As a solo entrepreneur balancing the daily operations and compliance issues that come with running an investment advisor can occupy mental bandwidth that may have been devoted to portfolio management tasks. We have met several existentially threatening challenges and have managed to persevere.

As I continue to make progress on Pythia, a certain joy has come with finally making progress on what may be my magna carta. As my mood improves so does my vision. Though balancing operations with immersing myself in computer science/IT, and my other endeavors is a challenge, I am absolutely excited to deliver a unique service to the industry.

Stay tuned.

Capital, Access & Influence

Exploring and gaining experience in the many areas of business and finance continues to inspire my appetite for change. Since childhood I have pursued meritocratic environments. My athletic career has disappointed deeply in that area. Though I continue to find marginal success in different areas, the returns have not matched the investment or risk taken.

Part of my pursuit for an environment that rewards individuals based on merit or metrics, has been the want to live without regrets or attachments; freedom. Many athletes and entrepreneurs have heard the “after all I have done for you” speech, considered requests for mentions or credit, heard rumors of others taking credit, or been offered an award or recognition as a means of association. Some of us have been ostracized for an unwillingness to do as we were told, or accept less than we believe we are worth.

To all associated parties, I say good day. It seems the primary tool of manipulation of consultants is to increase their perceived value by decreasing your self worth. My most recent search for capital has exposed a deceptive environment where profits seems to be the only priority, once you have decoded the obfuscation games.

Some may attribute it to capitalism then assert one of several cliches like “50% of something is better than 100% of nothing” or “venture capital is tough.” Herein lies our societal dilemma; is capitalism evil? Though I will not portend a solution, I can say with certainty capitalistic greed rears its ugly head in every socioeconomic system.

Consider gentrification, political corruption, wealth and income inequality, upward mobility, industrial equity; representative business ownership limited by access to capital are not issues exclusive to America.

The expectation may be that as a young black male, I see white male baby boomers closing doors in my face, but that has not been true in my experience. It is black men, an ethnically diverse group of women, some white men and diverse groups and organizations; some who hold the keys while others see opportunity but effectively slow progress.

The conversation changes… they assert your lack of experience, mention your arrogant confidence, leverage your lack of capital, demean and degrade wherever possible, publicly support equal opportunity and privately pursue opportunities that benefit them directly.

The best advice I can offer entrepreneurs is to identify then ignore the noise, know your worth and find your bliss. Though all of your goals may not be achievable if you set your sights high, with perseverance your impact may be felt for generations. For those who have an active interest in repairing society; in God we trust.