I am the pricipal and Chief Investment Officer of a Registered Investment Advisory firm in Marin County, California. I utilize a Core Satellite strategy with four different risk models.
Core Satellite Portfolio Management
Core/satellite portfolio management is a strategy which builds the portfolio using a large “core” group of investments with a complement of smaller “satellite” positions. SWM uses a combination of dividend paying stocks, no load mutual funds, and exchange traded funds to build the core. The core or foundation of each portfolio is strategically designed for long term investment, with relatively low turnover. The satellite positions are smaller holdings that tend to be shorter term investments with higher volatility than its core holdings. Together, the strategies seek to deliver consistent performance, diversification, and a portfolio with several non-correlating assets.