Investment Philosophy

Capital Trust builds your financial foundation on three cornerstones:

Wealth Planning – Wealth management planning addresses tax, insurance, and estate planning matters in constructing an optimal asset allocation. We seek to understand the client’s complete financial picture.

Asset Management – Globally diversified multi- strategy portfolios designed to maximize after-tax, risk-adjusted returns. Our process is based upon Modern Portfolio Theory and is used by many of the nation’s largest university endowments.

Client Service – Personalized service reflects a client’s unique objectives and constraints. We are a single point of direct contact for all of your financial needs. Listening is what we do best.

The first step is establishing your goals and risk tolerance. Capital Trust has finessed this goal setting process to ensure that we are able to optimize your time in defining your goals – immediate needs and longer-term lifestyle desires. A personalized Investment Policy Statement is the result which clearly defines expectations as well as objective, measureable benchmarks against which we will be held accountable.

Our expertise in retirement planning is crucial for our individual clients. An experienced portfolio manager will work closely with you to determine your long-term goals, and will then incorporate financial projections and cash flow analysis into a carefully balanced portfolio designed solely for you.

Communication is provided through periodic personalized meetings and discussions, and quarterly letters with performance results. Our portfolio management software tracks total account performance across individual and consolidated accounts, helping provide a comprehensive understanding of current and historic results. Until all accounts are viewed as a unified whole, portfolio management is not efficient. At CTA, you have peace of mind knowing that your accounts are run in the most efficient manner possible, and are managed on a consolidated basis to ensure the total allocation is appropriate.


Capital Trust starts with a top-down survey of the global economy, forming a strategic outlook on asset classes. These steps form the basis for the client’s asset allocation. We allocate your portfolio with the goal of achieving a balance between calculated risk and the expected return on your investments. The process continues with sector and sub-sector decisions.

We then apply a bottom-up methodology that employs a series of quantitative screens. We use these screens to identify individual investment managers and mutual funds that conform to the stated risk/return requirements of the portfolio, in the context of our macroeconomic view points.

Portfolios are then globally allocated across asset classes, industry sectors, and capitalization/ style categories. This provides a stable, integrated framework for optimizing total return over time, while limiting unnecessary exposure to risk.

Customized portfolios are allocated across five asset classes. Portfolios are actively managed and monitored to your specific Investment Policy Statement (IPS), with varying portfolio weights in equities, fixed income, natural resources, REITs, and alternative investments such as private equity and absolute return.

  • Client Focused: Our goal is to produce long-term returns consistent with each individual client’s unique needs.
  • Performance Oriented: Asset allocation is a primary determinant of portfolio performance.
  • Risk Management: Diversification is paramount to helping clients earn higher returns in a lower-risk portfolio.
  • Efficiently Executed: Low turnover, low expenses, and an awareness of tax implications are fundamental to our portfolio management strategy.


In addition, we use our Global Asset Allocation to layer portfolio exposure in International stocks, Commodities, Master Limited Partnerships, Precious metals, and other alternative asset classes. In this way we offer greater diversification, and potentially higher returns, than portfolios comprised only of stocks and bonds.