Investment Consulting
In partnership with Redwood Investment Management
For high-net-worth individuals and medical practice owners, protecting what's already been built is as important as growing it. The RiskFirst® approach is built around that reality — managing downside risk within pre-defined limits, so a single market event never derails a lifetime of planning.
Why Focus on Risk?
Traditional buy-and-hold strategies — the classic 60/40 portfolio — were designed for institutions with infinite time horizons. Large endowments can wait out a 50% drawdown. Individual investors, particularly those approaching a liquidity event or relying on their portfolio for lifestyle support, cannot.
For medical practice owners, this dynamic is even more pronounced. Your practice is already your primary growth engine. The investment portfolio's job isn't to maximize year-over-year IRR — it's to protect accumulated capital, provide liquidity when needed, and avoid a catastrophic loss at precisely the wrong moment.
A significant drawdown the year before a practice exit can permanently alter the financial outcome of a lifetime of work. The RiskFirst® approach is built to prevent exactly that.
The math of losses is asymmetric — and unforgiving. The larger the drawdown, the harder it becomes to recover.
| If you lose | Gain required to break even |
|---|---|
| 10% | 11.1% |
| 20% | 25.0% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100.0% |
A 50% loss doesn't require a 50% gain to recover. It requires 100%. Managing the downside isn't conservative — it's strategic.
The Proof
This hypothetical comparison illustrates the core insight behind RiskFirst®. The portfolio that experiences a smaller drawdown ends ahead — despite having a significantly lower recovery return. Protecting capital on the way down is more powerful than chasing gains on the way up.
The lower-drawdown portfolio ends ahead — with half the recovery return. This is the compounding advantage of avoiding large losses. It doesn't show up in bull market comparisons. It shows up when it matters most.
How We Implement It
As a certified RiskFirst® Partner with Redwood Investment Management, we build custom Engineered Risk-Budgeted (ERB) portfolios for our clients. These portfolios are constructed around strict drawdown targets — not generic risk profiles — and incorporate both traditional and tactical mandates that adjust dynamically to market conditions.
Unlike standard model portfolios, ERBs are built with your specific situation in view: your practice equity, your exit timeline, your liquidity needs, and your personal drawdown tolerance. The result is a portfolio that behaves predictably under stress — because it was designed for it.
Portfolios built around strict drawdown parameters — 5–8%, 8–12%, etc. — so you know your maximum loss scenario before you invest.
Unlike buy-and-hold, ERBs actively adjust allocations to sidestep or mitigate risk in turbulent markets — not ride them out.
Incorporating private real estate, private credit, and other income-focused private market offerings via iCapital and strategic partners.
Hold individual securities you choose to maintain alongside the broader ERB strategy — without disrupting the overall risk architecture.
Hypothetical performance scenarios are for illustrative and educational purposes only and do not reflect any actual account performance. There is no guarantee that any objective stated will be achieved. RiskFirst® is a registered trademark of Redwood Investment Management, LLC, a registered investment advisor with the SEC. Such registration does not imply a certain level of skill or training. Past performance is not a guarantee of future results. There is risk involved when investing in securities, which can include loss of principal. This information should not be relied upon as investment advice or a recommendation regarding any products or strategies. Before engaging in any investment strategy, consult an advisor to discuss individual goals and needs.
Ready to Learn More?
Our investment approach starts with understanding your full balance sheet — including your practice. From there, we engineer a portfolio designed to protect what you've built while positioning you for the future you're planning toward.