Investment Management

F. Dennis De Stefano CPA CFP is the Chief Investment Officer and President of Maui Hawaii based De Stefano Wealth Management. Our Fee-Only Wealth Management firm specializes in Professional Investment Management.

There is an important difference between Saving and Investing. You should Save for your short-term goals, but you need to Invest to achieve your long-term Life-Goals.

Savings is basically a form of postponing consumption. Passbook accounts, money market funds, or short-term certificate of deposits (CDs) are good places to save for short-term needs such as family vacations, a new car, or emergencies. But for your long-term Life Goals, such as achieving a secure retirement for yourself or providing college education for your children, you need to Invest in assets that historically have earned higher rates of return, such as stocks and bonds.

De Stefano Wealth Management is a Manager of Managers - Instead of choosing individual stocks or bonds, we search for Money Managers who are very good at some specific aspect of money management.

This allows us to focus on the big picture and concentrate our work on Managing Investment Risk and Strategic/Tactical Asset Allocation among a broadly diversified mix of Asset Classes, rather than focusing on one narrow niche (i.e. small-cap growth stocks) and choosing among a limited variety of potential investments.

This also allows us to change Asset Classes and Money Managers in light of long-term investment performance criteria and changing conditions in the global investment environment and financial markets.

As with the financial planning side of our practice, we utilize a Team ApproachYour team consists of DeStefano Wealth Management as your Portfolio Manager, a highly qualified and experienced team of outstanding Institutional Money Managers, and the prestigious BCA Research Group.

We confidently believe that the active management of investment risk is the key to long-term investment success. It is important to recognize that investment management cannot control investment returns because no one controls security prices.  Investment management can only control risk.

Accordingly, our focus is on Portfolio Design, Risk Management, Asset Allocation and the selection and monitoring of a team of outstanding Money Managers.

Portfolio Manager: As your Portfolio Manager, we will

  • Develop your individualized Investment Policy Statement (IPS).

  • Develop a personalized asset allocation policy and adjust the portfolio mix in light of changing market conditions.

  • Analyze and continuously monitor the macro-economic investment environment and conditions in the global financial markets, and develop appropriate portfolio strategies. 

  • Select a team of outstanding Institutional Money Managers and monitor their performance.

  • Continuously manage your overall Investment Portfolio on a Non-Discretionary basis, with all transactions cleared through Schwab Advisor Services.

  • Provide quarterly reports, including performance information and recommended portfolio adjustments. In addition, our fifty page quarterly DWM Analysis and Outlook provides you with our forecast and analysis of trends in equities, bonds, the economy, the dollar, inflation, monetary and fiscal policy and interest rates.

Money Managers: Each money manager selected has a clearly defined management style, consistently applied, with a long-term record of superior risk-adjusted investment performance. We will diversify your team of money managers by domestic and international managers, management style (value and growth) and market cap (small, mid, and large) sector emphasis.

BCA Research Group: This prestigious international consulting group uses a forecasting approach based on the principle that an expanding base of liquidity and non-inflationary credit creation lead to a favorable environment for sustainable economic expansion and therefore a healthy climate for stocks and bonds. Excess credit creation leads to accelerated price inflation, balance of payments difficulties and adverse pressure on the currency. This results in an unhealthy investment and economic climate, creating the need for alternative investment strategies.

BCA provides us with their assessment of the dynamic, global investment environment and conditions in the global financial markets. Their analysis and your Investment Policy Statement provides the underpinning for the portfolio strategies utilized and asset allocation decisions made, tailored to your unique circumstances.

What sets us apart from other Wealth Management firms, in addition to our Fee-Only structure, is:

  • Management Of Investment Risk: To win, the first thing you must do is not lose. We firmly believe that the active management of investment risk is the key to long-term investment success.

  • Asset Allocation is the dominant factor in determining total portfolio return, and it is the central theme of our investment management process. Studies have indicated that over 90% of a portfolio’s variability of return is the result of asset allocation decisions. 

    Asset Allocation is the deceptively simple yet critically important process of allocating your money among (and within) individual asset classes, such as stocks and bonds, and adjusting those allocations over time in light of changing conditions in the investment environment and financial markets. 

    Our unique approach to Asset Allocation incorporates the historical precedent of Strategic Asset Allocation and the market insight of Tactical Asset Allocation, and thus allows us to maintain both a broadly diversified portfolio and the flexibility to adjust the portfolio (not merely re-balance allocations) in light of changing market conditions.
  • Multiple Money Mangers: We utilize a team of institutional quality money managers to manage various sections of the portfolio. Each money manager selected has a long-term record of superior risk-adjusted investment performance. Access is obtained through the mutual fund or separately-managed accounts they manage.

  • Broad Diversification: Your portfolio will be diversified among stocks, bonds, money market instruments,  international securities and alternative investments. Your management team will be diversified by utilizing both domestic and international managers, by management style and by market cap sector emphasis.

  • Holistic Approach to Portfolio Management: We will manage your brokerage, IRA and other accounts as a single, integrated portfolio.

  • Continuous Management: Your portfolio will be managed in light of changes in the global investment environment, financial markets, and changes in your individual goals and objectives.

  • Management Process: Successful investing is a management process and not “independent purchase decisions over time”. In other words, most individual investors think of investing as a purchase decision and consequently purchase investments at different times, under various market conditions, and for different purposes. And they do not consider how the individual investments work as a portfolio relative to their financial goals and objectives and the changing global investment environment and financial markets.

An old Chinese proverb says, “A journey of a thousand miles begins with a single step”.

Isn’t it time to take that First Step? If you have at least $750,000 in investible assets, call us today to schedule your Complementary Confidential Consultation.