At Optimum Asset Management (OAM), we strive to maximize the return on our clients' portfolios while minimizing investment risk.

The definition of risk may vary from one client to another. Some clients want to protect their portfolios from market declines, and for them we use absolute risk management. Others, who are usually institutional investors, want to avoid returns that underperform a benchmark index. In this case we use relative risk management.

Even so, some risks concern all types of investor at once, such as the default risk of corporate bonds. OAM's philosophy is to invest only in investment-grade securities rated BBB or higher and to limit their already substantial weighting in client portfolios. Even though some managers overweight this asset class significantly, OAM's philosophy is to invest only in investment-grade securities rated BBB or higher and to limit their already substantial weighting in client portfolios. Even though some managers overweight this asset class significantly, OAM prefers to ensure diversification, such as by emphasizing municipal notes with their attractive risk-return profiles.

In all cases, whether to manage risks or to maximize performance, OAM's managers use models and mathematical tools, developed primarily in house, to assist them with their investment decisions. This quantitive component is an integral part of our management philosophy.