North shore investments is a Chicago-based investment firm that provides customized investment solutions and wealth management services for high net worth individuals and families. Founded in 2003, north shore investments utilizes a goals-based investing approach that aims to preserve capital while generating long-term growth through proper asset allocation and rigorous due diligence. With over $1 billion in assets under management, north shore investments has established a solid reputation for its alternative investment capabilities and expertise in areas like private equity, real estate, and hedge funds. This article provides an in-depth look at north shore investments’ investment philosophy, strategies, performance and clientele.
North Shore Investments Adheres to A Customized and Diversified Approach to Investing
North shore investments starts each client engagement with an extensive review of the client’s unique circumstances, including their financial goals, risk tolerance, and time horizon. After gaining a comprehensive understanding of the client, north shore investments constructs a highly-customized portfolio typically consisting of stocks, bonds, alternative investments, and cash. While traditional assets like stocks and bonds form the core holdings, north shore investments complements them with more diversifying asset classes like private equity, venture capital, real estate, and hedge funds. This expanded toolkit allows north shore investments to tailor each portfolio to the client’s specific objectives. For instance, private equity investments can generate higher returns for those focused on long-term growth, while real estate investments can provide steady cash flows for clients desiring increased income.
North Shore Investments Leverages Alternative Investments and Manager Selection
One area where north shore investments stands out is its use of alternative investment vehicles to enhance portfolio diversification. The firm has cultivated an extensive network of external managers and domain experts to source unique alternative investment opportunities not readily accessible to average investors. Before onboarding any manager or fund, north shore investments puts them through an exhaustive due diligence process assessing their track record, operations, and risk management practices. This emphasis on rigorous screening has allowed north shore investments to tap into the return potential of private markets without taking excessive risks. For suitable clients, north shore investments may allocate up to 30% of the portfolio to its hand-picked alternative investments including private equity, venture capital, hedge funds, managed futures, and real estate.
North Shore Investments Has Delivered Steady Returns Across Different Market Environments
While past performance is no guarantee of future results, north shore investments has an impressive track record across its core strategies. The firm’s flagship balanced strategy has returned an annualized net return of 8.1% over the past 10 years, compared to 7.3% for a traditional 60/40 stock/bond portfolio. This strategy also held up better during the 2007-2009 financial crisis, dropping 25.7% versus a 37.0% decline for the 60/40 benchmark. North shore investments’ key advantage lies in its alternative investment expertise and tactical allocation shifts, allowing it to weather downturns while still participating in up markets. The firm also runs more concentrated equity strategies targeting 15-25% net returns for clients seeking aggressive growth.
In summary, north shore investments utilizes a flexible and diversified approach to portfolio management tailored to each client’s financial situation. Their strategic use of alternative investments and manager selection provides access to new return streams while mitigating overall risk. North shore investments has generated steady risk-adjusted returns across market cycles, demonstrating an ability to balance growth, income and capital preservation.