Our investment approach is similar to that of a family office. Our customized portfolios tend to be significantly more diverse and intricate than the norm. Our approach is comparable to the difference between checkers and chess. A typical investment manager can only offer a few “moves” on merely half of the “board.” They are limited to stocks and bonds. At Cornerstone, we believe that stocks and bonds alone are not sufficient to preserve and build wealth. Today’s investment world presents far greater opportunities and requires a myriad of “plays.” It requires skilled chess players. That is why Cornerstone offers far more investment opportunities across numerous asset classes, focusing a great deal of its efforts on real estate investments.
The primary objective to significant diversification across asset classes is to have investments with low correlation to each other. As you move into the world of private investments, which can have low correlation to the stock market, your investment world becomes more dynamic and sophisticated. You are exposed to more opportunities and to different plays. You increase the possibility to sell out of strength and buy into opportunity; or in other words, buy low and sell high. While diversification can neither ensure a profit nor eliminate the risk of losses, proper diversification across non-correlated asset classes offers the potential to reduce the volatility in a portfolio while increasing returns.