SALEM, N.H.--(BUSINESS WIRE)--Hemenway Trust Company (HTC), a New Hampshire-based private trust and wealth advisory firm affiliated with Hemenway & Barnes LLP, today issued a new discussion paper titled, “Empowered by active investing: thriving in a high-stakes market environment.” The paper, authored by HTC Senior Portfolio Manager Christopher M. White, details opportunities presented to active investors in the current market environment.
“As the Federal Reserve throttles back on easing, passive funds will be at the mercy of the market,” writes Mr. White. “Active investors, meanwhile, choose their own weightings in individual selections, creating portfolios that move independently of the index and are unbridled by off-strategy holdings.”
White writes that active investors should proceed with three keys to execution:
- Watch interest rates: When interest rates rise, the value of money rises and higher risk enters into equity selection. That is when active managers tend to do better, as the market begins to reward higher quality stocks.
- Commit to quality: Active investing puts an emphasis on quality, whereas passive investing uses a mix of equities that includes low quality purchases. Those low value stocks are camouflaged when the market is going up, but when the economy goes south, they are quickly exposed.
- Define your own goals: Beating the indexes is important, but chasing the herd to capture perceived upside does little to advance personal financial goals. It is more important for investors to determine their own personal benchmarks and definition of success.
About Hemenway Trust Company
Based in New Hampshire, Hemenway Trust Company, LLC (HTC) is a private trust company offering a full range of wealth advisory and management services. HTC was founded by Boston law firm Hemenway & Barnes LLP, which has served for 150 years as trusted counsel to the region’s high net worth families, businesses, and nonprofit organizations. The firm is uniquely designed as a home for legal and financial expertise, with a focus on providing each client with services that are specifically tailored and results-oriented.