Case Studies


Discipline and Process: How our client emerged from the dot-com crash unscathed

Telecommunication stocks plummeted when the dot-com bubble burst. However, timely portfolio reallocation saved our client from losses during the crash.

In the late 1990’s, while the Partners of LLBH d/b/a Coastal Bridge Advisors were still working at Merrill Lynch, a recently widowed client came to us with an equity portfolio that was 80% exposed to telecommunications stocks. Both she and her husband were employed by the “telephone” company and had invested in the sector.

Like many clients, her portfolio had appreciated and she found it difficult to understand why we should diversify her into other sectors and asset classes. She felt a personal affinity to the industry and had a strong predisposition to remain invested in the telecommunications sector.

Moving from herd mentality to a disciplined strategy

At LLBH d/b/a Coastal Bridge Advisors, we have a disciplined investment strategy centered around a rigorous planning process. Although sometimes contrary to popular opinions and trends, our approach dictates frequent re-balancing to achieve optimal asset allocation for our clients.

Our recommendation and execution helped our client avoid the crash following the Internet bubble when telecommunication stocks were down between 80%-100%.