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%.

 

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THESE CASE STUDIES ARE PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY TO PROVIDE AN EXAMPLE OF THE FIRM’S PROCESS AND METHODOLOGY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE RESULTS PORTRAYED IN THESE CASE STUDIES ARE NOT REPRESENTATIVE OF ALL OF THE FIRM’S CLIENTS OR THE CLIENTS’ EXPERIENCES. DIFFERENT TYPES OF INVESTMENTS INVOLVE VARYING DEGREES OF RISK, AND ACTUAL RESULTS MAY VARY MATERIALLY THAN THOSE PORTRAYED HEREIN. THEREFORE, IT SHOULD NOT BE ASSUMED THAT THE FUTURE RESULTS OF ANY SPECIFIC INVESTMENT OR INVESTMENT STRATEGY (INCLUDING THE INVESTMENTS AND/OR INVESTMENT STRATEGIES RECOMMENDED OR UNDERTAKEN BY THE FIRM) WILL BE PROFITABLE OR EQUAL THE RESULTS PORTRAYED HEREIN. AN INDIVIDUAL’S EXPERIENCE MAY VARY BASED ON HIS OR HER INDIVIDUAL CIRCUMSTANCES AND THERE CAN BE NO ASSURANCE THAT THE FIRM WILL BE ABLE TO ACHIEVE SIMILAR RESULTS IN COMPARABLE SITUATIONS. NO PORTION OF THESE CASE STUDIES IS TO BE INTERPRETED AS A TESTIMONIAL OR ENDORSEMENT OF THE FIRM’S INVESTMENT ADVISORY SERVICES AND IT IS NOT KNOWN WHETHER THE CLIENTS REFERENCED APPROVE OF THE FIRM OR ITS SERVICES. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE CONSTRUED AS PERSONALIZED INVESTMENT ADVICE. PLEASE CONTACT US FOR ADDITIONAL INFORMATION WITH RESPECT TO THE STRATEGIES AND/OR INVESTMENTS DESCRIBED HEREIN.

Coastal Bridge Advisors has been named the Best Private Wealth Manager Under $5B by Private Asset Management

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