As Chief Investment Officer at Stavis Wealth, what are your key responsibilities, and how do you approach investment decision-making for clients?

The most important part of my role is to identify the best risk-adjusted investment opportunities today, given the current conditions. The investment profession has often led investors to believe that some base diversification by asset class (equity, fixed income, alts), style (growth, value, long/short, global macro, etc.), size (large cap, mid cap, small cap), and geography is appropriate in all environments. However, the reality is that the construction of a portfolio should be likened to putting together a puzzle which includes valuation, fundamentals, momentum (security price and earnings), Wall Street expectations, institutional money flows, economic outlook, insider ownership, and most critically, how assets correlate with each other and the economy to shed light on whether the current allocation is appropriate for the desired outcome. This creativity becomes more critical when introducing a higher level of potential risk across economic and geopolitical uncertainty. Unexpected events like COVID-19 and the downturn in 2022 highlighted the need for more pro-active strategies that diversify with purpose.     

 

Can you tell us about your journey into the investment management industry? What initially drew you to this field?

After completing my chemical engineering degree, there was a period of time where I was unsure of what my future path might hold. I was in a bookstore looking for something inspiring to read, and a biography caught my eye that started me down this path. I had never heard of Warren Buffett (yes, sounds strange), but I became fascinated both by the person and what he did. I started reading everything about the people that shaped his life and was fortunate to get an opportunity to be a chemicals analyst at an investment firm in New York. From there, I weaved my own path of experience, including gaining some valuable, focused investment education along the way through the CFA program.

 

Your background in chemical engineering is quite unique in the finance world. How has that analytical training influenced your approach to investing?

While it seems common to now see many people from the hard sciences and engineering in the investment world, I did feel like I was a bit of an anomaly when I first made the shift into finance. My first role was actually quite quantitative, so my comfort with math was definitely an advantage in being able to jump in as well as contribute towards improving how we approached investment selection. The problem-solving base of engineering continues to serve me well, as concepts like margin of safety, volatility, and correlations parallel much of my academic training. At the same time, my interests have always been quite wide, and I took advantage of the fact that my school required everyone to have a strong liberal arts base. Putting all this together has definitely made me a better investor.

 

You’ve worked across a variety of asset classes and investment strategies throughout your career. How have these experiences shaped your approach to portfolio management today?

I have been very fortunate to work with so many incredible colleagues and mentors over the years. At Sanford Bernstein, I particularly learned the value of deep, thoughtful research to better uncover anomalies that others may have missed. At AIM, I learned the power of both business and behavioral momentum in determining the path of perceived investment value. Mockingbird taught me the value of flexibility and understanding how important uncorrelated returns were in asset allocation. MBM gave a more direct view of how most investors did not get the advice they deserved and that there was an opportunity to provide institutional quality investment solutions to a broader audience. And most recently, Franklin Templeton’s truly global approach was a reminder of how international diversification is a critical component of portfolio construction. 

 

You’ve managed assets at large institutions and run your own investment firm, working with a range of clients, from individuals to institutional investors. What lessons did you learn from those different experiences?

It may be a surprise to many, but I believe that today, there is a lot more in common across the spectrum of investors than there used to be. While each type of investor may have different goals in mind, whether it be paying for a child’s education or providing long-term funds to a charitable endowment, these goals are actually quite similar, and the tools available are the only difference. It is really a question of what level of comfort each investor has with strategies or asset classes they are less familiar with and what level of liquidity each investor requires. The landscape of offerings has widened, allowing a broader audience to have access to institutional-level advice.  

 

Outside of work, what are some of your personal interests or hobbies? How do you balance your professional responsibilities with life outside of finance?

I am blessed with a wonderful family and great community of friends in the Houston area, which creates so many opportunities for socializing and giving back to the community. We enjoy traveling, from skiing in Utah to eating in Italy to connecting with family in India. I have been involved with various organizations focused on reducing hunger locally, improving educational opportunities globally, and supporting intercultural connections. I like to stay active through running and biking regularly, including participating in bike rides to Austin and half marathons in Houston. I am a die-hard Houston sports fan, including being an Astros season ticket holder since 2000. And I am always looking for a great new book, TV show, or movie, so feel free to recommend your favorites!