In June, I wrote a memo to the firm to make clear that Litman Gregory stands against racism and views inclusion as a core value. Our co-founders also shared a personal communication that underscored these beliefs in which they offered to extend our company’s charitable matching program and bolster this year’s impact by personally matching individual gifts to charitable organizations that support communities and causes working to achieve an equitable society for all. We believe it is also important that our clients and friends know where we stand so I am sharing excerpts from my internal communication below:
I am reaching out on behalf of our Executive Team to acknowledge the extraordinarily difficult period we’ve been experiencing and to consider this in the context of the values of our firm. Recent events have elevated the frustration and urgency around the destructive power of racism and the imperative for progress. We are also amidst a painful economic downturn and health crisis that is particularly hitting the most vulnerable members of our community. We know that many of us share feelings of sadness or anger and a strong desire to help.
In considering the events around us, we have had many individual conversations within the Litman Gregory community and feel it is important that you know where we stand. We believe diversity is a strength and that we and our clients benefit from a workforce that supports and draws on a range of backgrounds, viewpoints, experiences, and identities. We do not accept discrimination of any kind. We stand firmly in support of the daunting challenge to bring racial equity, and we recognize that racism exists overtly and in subtle persistent ways that break hearts and destroy lives.
We believe a society that provides equal and fair opportunities is not only our moral obligation but is also in our collective interest. Given our country’s history, it may at times seem difficult to achieve the positive change that will move us closer to that goal. In support of what we strongly believe is a collective interest and responsibility for the community and broader world we all live in together, we must find ways to do so.
We are each individually stronger if everyone is stronger, and we join the effort to work toward a better, more just world.
—Steve Savage, CEO
Our Thoughts on the Silicon Valley Bank Failure
Recent problems in the banking industry have increased uncertainty in the financial markets. On behalf of our clients, we have taken a close look at the situation and assessed the potential consequences. In this post we summarize the circumstances at Silicon Valley Bank that led to its failure, describe the broader implications, and review what we see as minimal impact for our clients and their portfolios.
Insight Newsletter—Winter 2023
Our Insight Newsletter is now available. Included in this edition: Investment Commentary Research Update: Trend Following with Managed Futures Tax Planning Opportunities from
Research Update: Trend Following with Managed Futures
The evidence of the long-term value that trend-following managed futures bring to a balanced portfolio is compelling, even though there are shorter periods where sharp see-saw patterns can lead to disappointing returns. However, in a year like 2022 that saw significant declines for both stocks and bonds, managed futures experienced large positive gains and were one of the only asset classes to provide meaningful downside protection. This research update serves to address many of the questions that we receive about this interesting investment strategy.