Veterans Day: A time to say thank you

Noreen D. BeamanNoreen D. Beaman, Chief Executive Officer

Today we recognize those who have sacrificed careers, precious time with loved ones, and even their lives to answer our country’s call to service.

Please take a moment out of your busy day today to attend a Veterans Day event in your area or simply say thank you to those who are currently serving or have served in the military.

On this Veteran’s Day, we say thank you to our veterans at Brinker Capital—Chuck Widger, Tom Daley, Jimmy Dever, Lee Dolan, Jay O’Brien, Jim O’Hara, Jeff Raupp and Bill Talbot—and to everyone who has served and protected our country.

To be born free is an accident.
To live free is a privilege.
To die free is a responsibility.
–Brig. Gen. James Sehorn

If you’re looking for additional ways to get involved, click here for ideas.

Brinker Capital, Inc., a Registered Investment Advisor

Brinker Capital Founder and Executive Chairman Charles Widger Makes Historic $25 Million Investment in the Villanova University School of Law

Coyne_HeadshotJohn Coyne, Vice Chairman

All of us at Brinker Capital are proud to recognize the generosity of our founder and executive chairman, Chuck Widger, who has made a transformative $25 million investment in the Villanova University School of Law. In recognition, the school has been renamed the Villanova University Charles Widger School of Law.

Chuck, a 1973 Villanova School of Law grad, proudly refers to himself as a “Villanova lawyer,” and has remained involved with the school in various capacities over the years. He has played an active role in its efforts to revolutionize legal education by infusing vital business coursework and practical experience into the Villanova School of Law’s curriculum. Its tagline, “Where Law Meets Business” perfectly captures Chuck’s vision of what law schools should be doing to train tomorrow’s legal, business, government and nonprofit leaders.

Chuck_BlogChuck stated: “My investment in Villanova Law is an investment in the preservation of the two institutions that are vital to a free society, the rule of law and a market economy, both of which will enable us to flourish as a people for generations to come.”

Brinker Capital is pleased to recognize all of our Villanova alumni: Phil Green, Ping Guan, Ed Kelly, Neal McLaughlin, Jeff Raupp and Jamie Shoup.

More information about the Villanova University Charles Widger School of Law can be found at: http://www1.villanova.edu/villanova/law.html

Brinker Capital, a Registered Investment Advisor.

Thank You, Veterans

shutterstock_125204504In May of 2011, the Brinker Capital family lost one of its own in Charles “Chief” Burton, who passed away from cancer at the age of 65. As a former Naval officer, we remember Chief on this Veterans Day for the legacy he left and for his unique story that has become a part of our company culture.

During the Vietnam War, Chief was the captain of a PT (Patrol Torpedo) boat tasked with patrolling the rivers in search of enemy strongholds. On one particular instance, he was made aware of an order to take out an enemy village. It just so happened that Chief had recently been through the targeted village and knew that there were no enemy soldiers there. When he communicated this information to the general, he was sternly told to follow orders and continue as instructed. It was then that Chief made a decision that would impact not only his life, but the lives of countless others—he refused the order.

Refusing a direct order from a commanding officer got Chief court-martialed, but the decision to do so proved right. They determined that his intel was right and that there were only civilians in the village they were ordered to attack. Chief was later exonerated and served out his punishment—no ice cream for a week (or something equally as trivial). He would later receive the Navy’s Commendation medal.

Today, Brinker Capital presents the Chief Burton Award of Courage at the end of each year to honor an employee who has faced a difficult situation and met it with the same strength, integrity and bravery as Chief to overcome and make a difference. So on this Veteran’s Day, we say thank you to Chief, our other veterans at Brinker Capital—Chuck Widger, Lee Dolan, Tom Daley, Jeff Raupp, Jay O’Brien, Jim O’Hara and Bill Talbot—and to everyone who has served and protected our country.

Brinker Capital, Inc., a Registered Investment Advisor

Does Balance Truly Exist in the Lives of Professional Women? It’s Up to You

Noreen D. BeamanNoreen D. Beaman, Chief Executive Officer, Brinker Capital

Last week I had the pleasure of attending Financial Advisor magazine’s inaugural Invest in Women conference in Las Vegas. It was well attended by prominent and respected women of the financial services industry and it was a two-day agenda full of valuable discussions and presentations about all aspects of women in the financial industry.

Throughout the day-one discussions, the debate emerged about whether balance can truly exist in the lives of professional women. A few contended that a meaningful balance can be achieved but the majority concluded that, for most women, balance between career and family is an ever-shifting goal. At best, it’s a moving target that we may occasionally hit; most of the arrows we fire blindly sail past the target, leaving us struggling to find a way to “do it all.”

The story isn’t a new one—professional women have been trying to balance the needs of family and career (and self? – often that’s not even on the list) for many years with varying degrees of success. Most of the women at the conference agreed that it was a perpetual juggling act, often lasting for years, sometimes decades. Many have spent some time forsaking career for family and raising children. Others have spent time away from home, focused on growing a career and meeting the demands of their professional lives. And now as individuals are living longer, many are struggling with the task of supporting both aging parents and children while maintaining a successful and demanding career. Many have done all of it at one time or another.

shutterstock_99376793As we moved into day two, the discussions evolved as it became clearer that the answer to find what works best at any given time lies within each of us. There’s no consolation for those looking for the magic plan or formula, but the truth is that it’s upon each of us – male or female – to drive our own life choices and embrace the decisions we make. Balance is an elusive target, and the journey is personal and unique to each of us.

In my 20+ years of being part of the financial services industry, no employer has ever offered to take a back seat so that I could be more present for my children. My family has never declared, “We can handle everything from here, why don’t you spend more time focused on your career?” It’s on each of us to determine when and where to make sacrifices and to decide when to step back and when to dive in.

It’s not up to our family or our employer to make our choices for us. Every individual must assess their life situation with every change, evaluate their priorities, weigh the sacrifices and be willing to carry out the ones we choose. It’s sometimes easier to put the onus on others—whether work or family—to determine our level of engagement and then complain if we are being pulled too far in one direction. But if we truly own our decisions and acknowledge that we will make mistakes now and then, we empower ourselves to be more successful in both our careers and our lives.

The views expressed are those of Brinker Capital and are for informational purposes only. Brinker Capital, Inc., a Registered Investment Advisor.

Chasing Markets

Jeff RauppJeff Raupp, CFA, Senior Investment Manager, Brinker Capital

Back when I was in the U.S. Army, one thing I dreaded was the two-mile run as part of the Physical Fitness (PT) Test. I am not a runner. While most people would scoff at the notion of a two-mile run being intimidating, I looked at it as 13-14 minutes of pain. It was timed, and the better finishing times naturally resulted in a better score. Seemingly anything above 15 minutes resulted in a fail and, of course, more running.

One of the things I had the most trouble with was finding the right pace. I’d have instances where I’d try to run a balanced race only to end up having to sprint the last few hundred yards to reach my desired time. Then there were the times where I’d go out too hard and find myself stumbling into the finish line. The hills on the courses would complicate things – I’d kill myself trying to keep a constant pace uphill and downhill.

shutterstock_175699433After struggling with this for months, I came up with a better solution. We always ran as a group, and I found that I could usually find a few people that would consistently run around the same time I was looking for. Then my objective would be to keep up with them knowing that as long as I finished somewhere in their vicinity, I’d hit my goal.

The other day someone asked me whether investors’ financial goals should be to try to outperform the market, and with my response I thought there were a lot of similarities to my past running strategy.

An investor starts with an objective they’d like to get to, how much money they have, expected cash flows and their time horizon. From there it’s a matter of finding the right mix of asset classes that historically has shown a high probability of achieving the returns necessary to reach the objective(s). That mix can be thought of as your strategic plan.

Along the way, the market is a useful reference point. Investing isn’t a smooth journey, so when your strategy has drawdowns or grows faster than you expected, knowing how markets performed helps you determine if that’s just market volatility or if something may be wrong with your plan. Changing your strategic plan along the way can be dangerous, particularly at market extremes. If you’re always chasing the runner that looks the strongest at the moment, there’s a good chance you’ll burn out before the finish.

The views expressed are those of Brinker Capital and are for informational purposes only.

Happy Holidays from Brinker Capital

Noreen D. BeamanNoreen D. Beaman, Chief Executive Officer, Brinker Capital

I wanted to take a moment to wish all of our advisors, the clients they serve, our strategic partners, and all friends of Brinker Capital, a wonderful holiday season.

We are thankful for the many partnerships we have with you and the continued support you show us. We are looking forward to another year of commitment to taking great ideas and applying a strong discipline to provide better outcomes.

On behalf of Brinker Capital, Happy Holidays!

“During this holiday season, please pause and take a moment to remember and thank, in some fashion, our men and women in uniform both past and present.”
~Chuck Widger, Founder & Executive Chairman

Introducing the New BrinkerCapital.com Website

Sean ForcineSean Forcine, Interactive Media Manager

As the interactive media manager at Brinker Capital, I’ve witnessed the evolution of our business, brand and culture for the better part of a decade. The industry and the world around us has of course evolved as well. Smartphones, tablets, mobile apps, social networks and so many other advancements have dramatically changed the way we access and share ideas and information. That’s why Brinker Capital is continuously looking at how we can best reach our community of financial advisors and investors. With this philosophy in mind, I am pleased to announce our latest enhancement—the NEW BrinkerCapital.com website.

Our new website has been completely redesigned, giving it a more user-friendly layout and interface. Less text, more white space, and more images and videos are just a few of the features that make the website more aesthetically pleasing and easier to digest the content we share.

Some of the other enhancements to BrinkerCapital.com include:

  • Greater access to content on our products and services
  • A centralized Resource Center housing all of our marketing materials
  • More investor-facing materials for advisors to share with their clients
  • Mobile access from any smartphone or tablet
  • Seamless access to the Brinker Blog and social media networks
  • Deeper insight into the Brinker Capital culture

BrinkerCapital.com was a labor of love for the past two years—and we did it with the direct help of our advisors. We wanted to know what content advisors across the industry wanted to see and how they wanted to access it, so all of these changes were designed with the advisor and investor in mind.

I could certainly go on, but I invite you to visit the new BrinkerCapital.com and experience the improvements for yourself. We would love to hear your feedback, so in keeping with the spirit of why we designed the website, please let us know what you think, positive or negative, or offer suggested enhancements by emailing me at sforcine@brinkercapital.com. I look forward to hearing from you.

Announcing our New Book, Personal Benchmark: Integrating Behavioral Finance and Investment Management

Chuck WidgerCharles Widger, Executive Chairman

Today is a very exciting day. I am pleased to announce the completion of my book, Personal Benchmark: Integrating Behavioral Finance and Investment Management co-authored by Dr. Daniel Crosby (@incblot) and published by John A. Wiley & Sons, Inc. This book is dedicated to America’s advisors, as it is these professionals who help investors achieve their goals.

We chose to write this book for three reasons:

  • The current investment advice delivery system is broken
  • In order to fix the system, it’s time to change the conversation toward goals-based investing
  • Behavioral finance needs to be automatic in order to be effective in improving investor behavior

The current investment advice delivery system is broken. The Great Recession of 2008-2009 was the wake-up call for investors and, in turn, advisors and the architects of the wealth management advice delivery system. No investor ever wants to experience a more than 20 to 30% decline in their investment portfolio. And yet, over the decades, this has not been an infrequent occurrence. Too often, encouraged by advisors, asset managers and the media, investors have sought to mimic returns generated by indexes. They tend to discover, albeit too late, that they really didn’t understand the risk involved with index-oriented or relative return investing. Then when the risk hits the fan, investors proceed to sell at market bottoms, having piled in at market tops. The existing system is not sufficiently helping investors.

bookIt’s time to change the conversation toward goals-based investing. We believe the solution to improving the investment advice delivery system begins with a focus toward goals-based investing. We believe it’s time to help advisors improve the investment experience for their clients. It’s time to turn emotion away from being an investor’s worst enemy to its best friend, time to get personal and help investors become more focused on their goals, time to change the conversation.

Behavioral finance needs to be automatic in order to effective. We also believe that in order to improve investor behavior, the elements of behavioral finance must be embedded within the investment management framework. This will help advisors and investors discuss, recognize, and manage behavioral biases. As a result, investors may avoid the typical pitfalls of wanting risk in bull markets, safety in bear markets, and failing to achieve expected returns because they do not properly manage risk.

I encourage you to visit http://www.personalbenchmarkbook.com for more information about Personal Benchmark: Integrating Behavioral Finance and Investment Management and hope that you find the book both educational and valuable.

The views, information, or opinions expressed in this blog are solely those of the authors and do not necessarily represent those of Brinker Capital, Inc. and its employees. The primary purpose of this blog is to educate and inform. This blog does not constitute financial advice. Brinker Capital, Inc. is a registered investment advisor.

Remembering September 11, 2001

Noreen BeamanNoreen D. Beaman, Chief Executive Officer, Brinker Capital

Today is a day of remembrance and reflection; a day where the gamut of emotions will be beyond words. We will grieve, empathize, reminisce, feel proud, and so much more as we take stock of the events that happened 13 years ago. Memories of the September 11, 2001 attacks are as vivid as ever today.

But despite the pain and anger spawned out of immense and unspeakable tragedy came a sense of community and resiliency. We have seen our economy hit historic lows and have had to weather the storm of plummeting markets. We have faced, and continue to face, terrorist threats and acts against our nation and fellow Americans. But we have shown great resolve rooted in the shared experience of September 11th. We are closer now, as individuals, families, and communities and are prepared to face whatever comes our way.

So on behalf of our family here at Brinker Capital, our thoughts are with all of those who lost their lives, their families, first responders, policemen and women, firefighters, doctors, nurses, and the everyday heroes who have helped make our nation stronger today.

Teaching Moments: Help Clients Shake the Emotional Hangovers

Sue BerginSue Bergin, President, S Bergin Communications

While the I-make-a-decision-and-forget-about-it approach might have worked for Harry S. Truman, it does not describe the vast majority of today’s investors.

According to our recent Brinker Barometer advisor survey[1], only 22% of advisors clients embrace Truman’s philosophy. The vast majority of clients suffer from emotional hangovers after periods of poor performance. They let the poor investment performance impact future decisions. Sometimes, it is for the better. In fact, 31% of clients made wiser decisions after learning from poor investment performance. Nearly half of the respondents, however, claimed that emotions cloud the investment decision following poor performance.

Bergin_LiveWithDecisions_7.30.14Another recent study, led by a London Business School, sheds light on how advisors can increase satisfaction by helping clients make peace with their decisions. According to the research, acts of closure can help prevent clients from ruminating over missed opportunities. To illustrate the point, researchers simply asked participants to choose a chocolate from a large selection. After the choice had been made, researchers put a transparent lid over the display for some participants but left the display open for others. Participants with the covered tray were more satisfied with their choices (6.30 vs. 4.78 on a 7 point scale) than people who did not have the selection covered after selecting their treat.

While the study was done with chocolate and not portfolio allocations, behavioral finance expert Dr. Daniel Crosby says that it can still provide useful insights on helping clients avoid what Vegas calls, “throwing good money after bad,” and psychology pundits refer to as the “sunk-cost fallacy.”

“Many clients are so averse to loss that they will follow a bad financial decision that resulted in a loss with one or more risky decisions aimed at recouping the money. If you detect that a client is letting emotional residue taint future decisions you should counsel them to consider the poor performance as a lesson learned. This will allow the client to grow from the experience rather than doubling the damage in a fit of excessive emotionality,” Crosby explains.

[1] Brinker Barometer survey, 1Q14. 275 respondents

The views expressed are those of Brinker Capital and are for informational purposes only.