Summit Capital’s Investment Strategy
Financial markets have become increasingly dynamic and complex. It would be very difficult for a single money management firm to be the best in all areas of investing. By utilizing the best money managers in each area of the market, we are able to diversify our clients’ portfolios not only across different assets classes but also across investment styles.
The markets move through cycles, and different types of investments move in and out of favor. We believe that trying to outguess daily market movements is an impossible task. Instead, our clients have exposure to most major asset classes much of the time. Thus, as the markets move through their cycles, our clients are continually participating in positive cycles of any one asset class.
Studies have shown that, over time, individuals investing on their own earn only a fraction of what the stock market returns annually. The primary reason is that individual investors tend to move in and out of investments at precisely the wrong time. Often they will buy a fund that has recently performed extremely well and sell an investment that has performed poorly. Often investors should be doing exactly the opposite or nothing at all. We believe that it is crucial to understand the dynamics behind this performance in order to determine the proper course of action. Strong or poor recent performance may indicate a time to buy, sell or just stand pat.
Our job is to analyze the particular factors and make informed decisions on your behalf.
For securities safekeeping and the processing of trades, Summit Capital maintains a relationship with Charles Schwab & Company, one of the nation’s largest brokerage firms. A computer link between our offices and Schwab’s provides us instant access to view client account information. We cannot access cash and securities in client accounts. Clients can view their account online at anytime.