Risk is inherent in any investment. It is therefore crucial to plan your investment portfolio in a way that protects you against losses. Without a solid downside risk management strategy in place, you are exposing yourself to unnecessary losses and financial instability. Taking steps to protect yourself from losses can help ensure that your portfolio remains healthy and profitable, even in difficult market conditions.

In today’s episode, Rusty talks with Geremy van Arkel, Principal and Director of Strategies at Frontier Asset Management, an independent national asset manager that supports and manages strategies for the clients of investment advisors.

With more than 25 years of extensive experience working with national accounts as well as with financial advisors and their clients, Geremy has developed expertise in managing global allocation portfolios, performing manager due diligence, and working with advisors and enterprise clients. As a member of Frontier’s Investment Committee, he is an expert in mutual fund selection, asset allocation, and portfolio optimization.

Rusty talks with Geremy about the importance of downside risk management, why Frontier Asset Management puts a lot of emphasis on actively managed mutual funds, and how international and emerging markets are becoming a serious part of the investment opportunity set.

Key Takeaways

Quotes

[07:19] - "Risk in the modern markets happens like a black swan. We don't get these obvious signs that it is happening. If you just look at all the risks that have occurred in my entire career, the last 30 years, every risk event was a complete surprise." - Geremy van Arkel

[15:17] - “I have a deep affection for the management and the art and science that security selection managers bring to the table. I understand the difference between different types of stocks and different types of exposures within a portfolio. And I believe in this day of indexing, it's almost like a lost art." - Geremy van Arkel

[49:00] - "You have to be unafraid to be wrong and alone in some areas. So, the key is understanding history and then being able to look forward and balancing all the opportunity sets that are in front of you. Not just betting on what you think will happen, but really balancing multiple outcomes to end up being on the right side of things." - Geremy van Arkel

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0243-OPS-2/8/2022