Absolute Returns vs. Relative Returns

At DaVinci, resting on relative returns is not good enough. Our Portfolio Managers strive to outperform the markets.

Traditional Measures of Returns

Traditional portfolios are measured against a series of benchmarks that are usually represented by a number of market indices. For example, if during a bad year, the market drops by 20% and a portfolio manager is down by only 18%, then by traditional wisdom, the manager has done a good job comparatively to the market. At DaVinci, we aim higher.

Absolute Measure of Returns

We strive to outperform the markets by developing portfolios that manage risk better, offer greater stability and less volatility than traditional investments could offer. We manage our portfolios on an absolute return basis, meaning that it is our goal to make profits for our clients every year, regardless of how the market performs. To accomplish this, we combine traditional investments such as stocks and bonds with alternative investments such as real estate, private debt, private equity and hedge funds.