Bullseye Investment Management, LLC

​​​Experienced portfolio management in Cincinnati


513-774-3325
937-377-1234
​Tim@bullseyeinv.com


Managing Portfolio Risk


Bullseye Investment Management seeks to reduce investment risk where possible consistent with client investment goals. The goal is competitive performance with less downside risk.


All investment results are the result of two factors:

  • The assets selected for investment (individual mutual funds, ETFs, stocks, Bonds, Etc.,)
  • The process applied to the chosen investments (allocation, purchase price, disposition methodology)


Risk can be managed (not eliminated) by applying conservative processes to investment assets that have an acceptable amount of risk.  The key, often, is achieving the correct mix of conservative and risk assets in the portfolio allocation. Riskier assets often have more growth potential, and more downside risk. Conservative assets may have less downside risk, but also offer less growth.  Bullseye has a focus to understand the client's risk tolerance and build portfolios accordingly. Mostly clients desire capital growth, but need to manage the risk. Reducing portfolio risk can also reduce investment returns, and does not prevent all losses in market declines.


Risk is reduced by:

  • Paying a low price for the security
  • Having a small allocation to the security-being well diversified
  • A deep understanding of the holding
  • Security cash flow- dividends and interest
  • ​Tax Deferral, such as a 4k rollover, or IRA
  • Sector selection-example -biotech stocks are more risky than consumer staples
  • Low levels of debt at a given organization
  • Falling interest rates
  • ​Personal finances being well managed, low debt, consistent savings, low spending levels
  • ​Adequate insurance (life, disability, health, Long term care, property/casualty) -Bullseye does NOT sell or offer insurance



Risk is increased by:

  • Paying a high price for a portfolio holding
  • Having a large allocation in a given security-lack of diversification
  • ​Not understanding the nature and risks of a security
  • A lack of dividends or interest
  • ​Current taxation of account
  • Sector selection-example-biotech stocks are more risky than consumer staples
  • High levels of debt at a given organization
  • Rising interest rates
  • ​Personal finances being poorly managed, high debt, high spending, no systematic savings
  • Insufficient insurance (life, disability, health, Long term care, property/casualty) -Bullseye does NOT sell or offer insurance


The above lists are not complete, and provided as an example and starting point for a conversation about investment risk. Call Tim at Bullseye
to learn how to reduce risk in your portfolio.