Investment Management
We provide each client with the building blocks to meet short-term commitments and retain flexibility for new opportunities while taking advantage of market returns to reach mid- and long-term goals.
Strategies for each client are directly aligned with risk capacity, account size, and future funding expectations. When possible, client portfolios include individual stocks and bonds to deliver the best result for the individual without increasing total fees.
This personalization also means we can leverage tax loss harvesting to add additional value. Tax loss harvesting can improve after-tax returns for investors and is particularly helpful for clients with concentrated stock positions or in high tax brackets who want to limit their overall tax obligation.
How We Invest
Once a client understands their current situation from a finance and tax perspective, we layer on our investment solution to ensure their investable assets are aligned with their planning objectives. This includes making sure clients have enough cash for immediate goals and taxes, have less volatile investments to bridge shorter-term needs, and more risky investments to pursue potential growth over the long term. Instead of using pooled investment vehicles such as mutual funds or ETFs, we implement a direct indexing strategy using individual stocks to construct client portfolios.
There are several benefits to purchasing individual stocks instead of using actively managed mutual funds or ETFs.
Cost Savings: By purchasing stocks directly for client accounts, we eliminate the expense ratios associated with mutual funds and ETFs.
Incorporating Existing Positions: In many instances, clients may already own individual stocks with unrealized gains. These stocks would need to be liquidated to purchase a mutual fund or ETF, triggering capital gains. At Resurgent, we incorporate existing positions into the stock portfolio to avoid paying these unnecessary taxes.
Customization: By using individual stocks, we can customize the portfolio to meet the exact needs and requirements of the client. These may include adding restrictions to specific stocks or sectors based on the client’s current job profile or building around a concentrated position that cannot be sold because of legal or tax requirements. Factor-based and regional constraints can also be customized to suit the needs of the client. This may involve eliminating a specific industry from their portfolio and/or overweighting stocks and sectors negatively correlated with their human capital exposure.
Control Capital Gains Tax: Portfolio managers of ETFs and mutual funds incur capital gains throughout the year while trading within the pooled investment vehicle, and the taxes are passed along to investors in the form of capital gains distributions. Because each of our client's stock portfolios are customized, we help clients avoid unnecessary taxes by controlling when capital gains are realized based on their unique situation.
Tax Loss Harvesting: When a stock in the portfolio drops in value relative to the purchase price, we can sell it to capture the loss for tax purposes and then buy a different company with similar risk and return characteristics to keep the portfolio on track. Capturing losses allows us to offset gains in other parts of the portfolio or to counter the tax implications of selling shares of private company stock at liquidity.
Gifting the Winners: Gifting appreciated assets is more tax-efficient than gifting cash. Since our stock portfolios have individual holdings, it is much easier to isolate the winners than in an investment portfolio of a dozen mutual funds or ETFs. This offers clients an extra benefit to their philanthropic spirit.
All securities and other investment products are subject to risks that investors should be prepared to bear. Past performance of a particular security or investment product does not guarantee its future return potential. Investing using a direct indexing strategy, a separately managed account, or a model portfolio of ETFs and mutual funds neither assures a profit nor can protect against a loss.*
