Riverside’s “we’ll take care of it” belief is most obvious in their turn-key, everyday management of their proprietary investment strategy; the “5 in 1” strategy.
Brian Machamer created the “5 in 1” strategy to encompass all the components that he believes must be present in an excellent, reliable investment strategy. These include: diversification of asset classification, diversification of analytical techniques, and monthly re-evaluations. Specifically, the “5 in 1” strategy analyzes and evaluates the following securities:
- Domestic, International and Emerging Stock Markets,
- Domestic, International and Emerging Bond Markets (all durations included)
- Precious Metals,
- Real Estate,
- Mortgages and
- High Yield.
This concept is known as Global-Marco Asset Allocation and it is the very definition of investment diversification.
Machamer built in the “diversification of analytical techniques” in an unique manner. The “5 in 1” is not just one strategy, but rather it is the combination of five (5) independent, unassociated, highly successful tactical asset allocation strategies. Machamer, through his research partnership, combines all five strategies, equally weighted, into a single investment portfolio. Each of the successful strategies uses their own proprietary analytical methodologies to build their portfolios. By combining the results of the five separate strategies, Machamer has been able to bring together, into a single portfolio, asset diversification and analytic diversification.
Finally, to address the tactical component, each of the five individual strategies re-evaluates and adjusts their asset allocations on a monthly basis. Thus, the “5 in 1” combined portfolio also updates monthly on the first trading day of each month. This process allows the combined portfolio to always be striving to over-weight those asset classes that are outperforming and to under-weight those asset classes (or avoid them completely) that are under performing. This tactical process is how Riverside continues to “take care of it” for our clients; always evaluating and always adjusting to provide a safe methodology to grow our client’s accounts.
Furthermore, Machamer provides on-going monitoring of this strategy and has the ability to add, subtract or replace any of the five individual strategies should he decide that is in the best interest of his clients. Currently, he have chosen strategies that provide superior “down-side” protection as the most important strategy trait. However, as time goes by, and the economic outlook changes, he may decide to emphasis other performance traits such as higher volatility or maximum potential gain, etc.
The combined “5 in 1” strategy seeks long-term appreciation with an diversified and balanced approach. Currently, the strategy provides a flexible global asset allocation framework that focus on low volatility and long term capital appreciation.
Riverside’s Conservative portfolio
This variation of the Riverside strategy is a “Long-only” strategy that invests 100% in the proprietary “5 in 1” strategy. Historically, this strategy has produced very low volatility and has provided superior down-side protection during stock market corrections. Although past performance may not be indicative of future returns, we believe this strategy is an excellent choice for those investors who are seeking a safe, low risk method to participate in the future returns of the stock and bond markets. The Conservative strategy does not invest in “Inverse” positions.
Riverside’s Moderate strategy
The Moderate variation of the Riverside’s investment invest 80% of account assets in the “5 in 1” strategy and the remaining 20% in more aggressive “timing” strategies. These timing strategies may include “leveraged” or “Inverse” positions. This variation is not an aggressive growth strategy, but instead looks for additional opportunities should the domestic markets enter in to a prolong decline in value.
Riverside’s Growth strategy
The Growth variation of the Riverside’s investment invest 60% of account assets in the “5 in 1” strategy and the remaining 40% in more aggressive “timing” strategies. These timing strategies may include “leveraged” or “Inverse” positions. This variation is our aggressive growth strategy, yet it is moderated by the 60% weighting in the conservative “5 in 1” strategy.
Our clients may invest in any of these strategies and they may change their mind without fees or penalties. At no time does Riverside Investment Partners restrict our clients from accessing their money in any way; no fees, no penalties and no minimum time period.