CLS Investment Firm

CLS was founded in 1989 by seasoned financial advisor, W. Patrick Clarke, and is one of the largest privately owned third-party money managers in the United States.

An experienced team of portfolio managers and analysts manages over $3 billion dollars for over 40 thousand investors. The CLS Investment Firm is an SEC-registered investment advisor based in Omaha, Nebraska.

Investment Methodology

A unique combination of asset allocation and risk management, CLS calls their investment methodology Adaptive Risk Allocation. Adaptive Risk Allocation consists of four elements:

Diversification
Risk Budgeting
Relative Strength
Asset Class Risk

CLS Investment Discipline

CLS believes risk budgeting is a critical element in creating model portfolios. An investor's risk budget is based on his or her individual financial goals, ability to handle risk and overall time horizon. Once a budget has been assigned, that risk cannot be over-spent nor can it be under-used. Risk budgeting manages the level of risk within an investor's portfolio.

CLS' goal is to weather down markets, take advantage of up markets and find profitable industry segments in a sideways market. By maintaining a risk budget and making trades based on both asset class and portfolio risk, CLS is able to capitalize on areas of growth and underweight areas of risk.

Risk Budgeting

The risk associated with various asset classes changes over time. That's why CLS' risk budgeting is a critical element in creating and maintaining client portfolios. Their portfolio management team is always watching market conditions and making adjustments to the portfolios in accordance with the goals and risk of the portfolio.

Who is this strategy suited for?

This approach should appeal to investors who:

Wish to maintain a consistent risk level to their investment portfolio.
Wish to take advantage of periods of relative undervaluation among asset classes.