Portfolio Design & Management

Tax Efficiency

It’s not about what you make, it’s what you keep. It is our belief that management of taxes is critical – often more important than the difference between great and average money manage performance. Our process employs techniques that maximize our ability to help implement efficient tax strategies. We utilize active tax-loss harvesting and holding periods to make sure paper gains aren’t eroded by avoidable taxation. High net worth investors are precisely the people most affected by taxes.

Private Equity

Private equity portfolio construction contains unique challenges compared to other asset classes

• Funds are raised using finite/termed vehicles. If you invest in a fund today, it will only have exposure to deal flow and valuations over the next 3 years
• Private Equity portfolio construction requires long-term commitment to put the capital to work, as well as wait out the long-term nature of the asset class (Generally a 4-7 year process to build up to target asset allocation to achieve proper fund/vintage year diversification)
• Can use a fund of funds to gain immediate diversified exposure to the entire PE industry across multiple sectors, vintages, and managers

Private Debt

Private Debt is one of the fastest-growing asset classes within Family Office portfolios

• Given yields in traditional fixed income, private debt offers above market yields and the security of a high capital position on the balance sheet
• We work with both corporate and real estate debt funds

Public Equity & Debt

Schechter can assist in portfolio construction and manager selection in the public equity/debt markets:

• Both active and passive management
• On the active side, world-class manager selected in conjunction with our consulting partner, Callan Associates. We mainly focus on specialist managers with an acute focus on their respective asset classes
• Ability to customize mandates for tax efficiency and allocation restrictions
• All asset classes available, as well as sector-specific strategies
• Active managers typically accessed through separate account format (own each underlying position), unless the strategy is more efficient in fund format
• Flexibility to access via funds or separate accounts
• Can customize to client tax bracket and state of residence

Asset Allocation

Every year, asset classes rise and fall, and most times with no rhyme or reason. What we know is that over the long run, stocks should outperform, but we don’t pretend to know when trends will begin or reverse. Schechter employs strategic asset allocation to determine the appropriate mix of asset class exposures to help you reach your specific financial goals.