Finance

STICKING With The PROCESS

At a time when markets fluctuate intensely, it can be tempting to follow trends toward the hot new product or strategy. This is especially true when dips are as significant as they were during the last big downturn of 2008-09. Gus Scacco, CEO and CIO of Hudson Valley Investment Advisors, Inc., knows that succumbing to these knee-jerk reactions will derail even the most sound investment strategies.

“There are always new products that come out,” Scacco said. “We’ve stuck to our process and to our investment philosophy for 20 years – and our clients have benefited from it.”

Sticking with it included avoiding panicking at the bottom of the downturn, a time when Scacco said a lot of people started “chasing the next great thing.” He added that those people are likely to be well behind where they should be today, while the overwhelming majority of HVIA’s clients “have gotten through that down period and have actually now seen a gain.”

The process that Scacco referred to is HVIA’s proprietary portfolio management process created and implemented by the firm’s original founder, Tom Gaurino, which has been a cornerstone of their management philosophy ever since. 

“It’s kind of a circular process, in that we are constantly evaluating – not just the economy because it’s a living, breathing thing – but also the companies that are involved,” Scacco explained, adding, “We are constantly looking at the historical risk return data for all asset classes, and we maintain the investment strategy that we’ve put forward.”

As registered investment advisors, Scacco explained that they are bound by a fiduciary standard to make decisions based on what’s best for the client. While he believes this is the ideal practice for the industry, he said that it isn’t always the case. Wire houses, for example, have in-house economists and strategists. “It’s very difficult to go against what’s being generated internally,” he said.

Comparatively, HVIA analyzes and instructs the allocation for each client on an individual basis, whether it’s a pension, an endowment, or for a high net worth individual. “We are monitoring these things on a weekly, monthly and yearly basis,” Scacco said. “And we re-balance the portfolio to take advantage when things are skewed for some sort of temporary factor.”

Scacco emphasized the importance of setting realistic goals – ones that are neither too aggressive nor too conservative – and understanding that returns aren’t wrapped neatly into fiscal quarters. “You have to have a longer term view,” he said. “That’s how you make money and substantial wealth over time.”

According to Scacco, Hudson Valley Investment Advisors’ diverse team, strong analytical capabilities, their practice of communicating directly with the companies they invest in, customer service and longevity have created a level of trust and goodwill not only with clients, but also with collaborative service professionals, making them a renowned industry leader in the Hudson Valley Region.

For more information visit: www.hviaonline.com

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