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Loyola Asset ManagementAlvaro Castillo, CIMA®, President; Jaime Domenech, CFA®, Vice President; Arturo Hierro, Vice President; Marcos Segrera, Financial Advisor; Milagros Perez Leal, Vice President, Operations; Gina Ferreira, Sales Assistant

Coral Gables, FL Leading Wealth Advisor

Did you know that you may actually need protection from yourself?By Alvaro Castillo

When it comes to investing in the stock and bond mar-kets, the formula for enor-mous wealth accumulation is straightforward. All you need to do is buy low and sell high. That’s it!

Simple to understand, yet very difficult to achieve in the real world—but why? The answer lies in the fact that humans are strongly influ-enced by emotions. Two of the stronger emotions are greed and fear. A lot of trad-ing is driven by emotions as opposed to rational invest-ment strategies.

In a rational investment strategy we would buy only undervalued assets and sell them when they become overvalued. In practice, however, a great number of investors, amateurs and pro-

fessionals do the opposite: They buy assets once they are overvalued because they are driven by greed; they then, sadly, are driven by fear to sell them when they are undervalued—the worst possible time. This cycle has repeated itself over and over since the dawn of trading.

We, at Loyola, believe that one of the most im-portant of all investment decisions is the one that defines the composition of the investment portfolio.

These assets should not only be well diversified but negatively correlated, and the buy/sell rules should be clearly defined well be-fore the first trade occurs. A portfolio constructed in this fashion requires only periodic rebalances, thus

eliminating constant trad-ing. Minimal trading en-ables you to keep fear and greed at bay and allows the investments to work for you, not the other way around. This can put you on the path to wealth cre-ation without unnecessary emotional tribulations.

Here, we can all learn from the Greek hero Od-ysseus. On his return trip from the Trojan War, he tied himself to the mast of his ship in order not to fol-low the sweet and tempting song of the beautiful but deadly Sirens who would have wrecked his ship and precluded his reaching home. Ithaca can be com-pared to the state of suc-cessful investing, which is the goal for all of us.

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Loyola Asset ManagementAlvaro Castillo, CIMA®, President; Jaime Domenech, CFA®, Vice President; Arturo Hierro, Vice President; Marcos Segrera, Financial Advisor; Milagros Perez Leal, Vice President, Operations; Gina Ferreira, Sales Assistant

Coral Gables, FL Leading Wealth Advisor

Did you know that you may actually need protection from yourself?By Alvaro Castillo

When it comes to investing in the stock and bond mar-kets, the formula for enor-mous wealth accumulation is straightforward. All you need to do is buy low and sell high. That’s it!

Simple to understand, yet very difficult to achieve in the real world—but why? The answer lies in the fact that humans are strongly influ-enced by emotions. Two of the stronger emotions are greed and fear. A lot of trad-ing is driven by emotions as opposed to rational invest-ment strategies.

In a rational investment strategy we would buy only undervalued assets and sell them when they become overvalued. In practice, however, a great number of investors, amateurs and pro-

fessionals do the opposite: They buy assets once they are overvalued because they are driven by greed; they then, sadly, are driven by fear to sell them when they are undervalued—the worst possible time. This cycle has repeated itself over and over since the dawn of trading.

We, at Loyola, believe that one of the most im-portant of all investment decisions is the one that defines the composition of the investment portfolio.

These assets should not only be well diversified but negatively correlated, and the buy/sell rules should be clearly defined well be-fore the first trade occurs. A portfolio constructed in this fashion requires only periodic rebalances, thus

eliminating constant trad-ing. Minimal trading en-ables you to keep fear and greed at bay and allows the investments to work for you, not the other way around. This can put you on the path to wealth cre-ation without unnecessary emotional tribulations.

Here, we can all learn from the Greek hero Od-ysseus. On his return trip from the Trojan War, he tied himself to the mast of his ship in order not to fol-low the sweet and tempting song of the beautiful but deadly Sirens who would have wrecked his ship and precluded his reaching home. Ithaca can be com-pared to the state of suc-cessful investing, which is the goal for all of us.

Loyola_WOR33.indd 82 11/7/14 2:53 PM

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“A lot of trading is driven by emotions as opposed to rational investment strategies.”—Alvaro Castillo

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Financial services experience Castillo, 33 years; Perez Leal, 30 years; Hierro, 23 years; Domenech, 16 years; Segrera, 3 years

Assets under Management $368 million

largest Client net Worth $1 billion

primary Custodian for investor Assets Accounts introduced to JP Morgan Clearing Corp. for custody by Western International Securities

Compensation Method Fixed fees (planning services); asset-based fees and commissions (investment services)

Minimum net Worth requirement $5 million (planning services); $1 million (in assets, investment services)

Method of Compensation Asset-based, hourly and fixed fees (planning services); asset-based fees (investment services)

professional services provided Planning, money management and investment advisory services

Website www.loyola-asset.com email info@loyola-asset.com

Loyola Asset Management 55 Merrick Way, Suite 208, Coral Gables, FL 33134 305.377.1941

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How to reach Loyola Asset Management

We serve a diverse group of domestic and international high net worth and institutional clients. To learn more about our team and our strategy, please contact us at 305.377.1941.

Seated, left to right: Arturo Hierro, Alvaro Castillo, Jaime Domenech; standing, left to right: Gina Ferreira, Milagros Perez Leal, Marcos Segrera

At Loyola, we work for a common goal: our clients’ success. We are honest, transparent and independent. Your prosperity is our mission. We take a holistic and disciplined approach to wealth management, which allows us to best serve those who depend on us. Through honest conversation and a belief in building relationships based on trust, those who work with us see immediate value in the way we do business. With clients across the globe, we are the perfect choice for creating comprehensive and unique financial solutions that produce tranquility and peace of mind for all. We help individuals address strengths, weaknesses, opportunities and threats present in their financial landscape. Through strategic alliances with the best in the business, we are always sure that our clients have the best resources available to them. We’ll do the planning, leaving you with no worries.

About Loyola Asset Management

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the evolution of financial intelligence

R E P R I N T E D F R O M

®

Alvaro Castillo, CIMA® President

Jaime Domenech, CFA® Vice President

Arturo Hierro Vice President

Marcos Segrera Financial Advisor

Milagros Perez Leal Vice President, Operations

Gina Ferreira Sales Assistant

Loyola Asset Management55 Merrick Way, Suite 208

Coral Gables, FL 33134Tel. 305.377.1941

info@loyola-asset.comwww.loyola-asset.com

Loyola Asset Management is featured in Worth® 2015 Leading Wealth Advisors™, a special section in every edition of Worth® magazine. All persons and firms appearing in this section have completed questionnaires, have been vetted by an advisory group following submission by Worth®, and thereafter paid the standard fees to Worth® to be featured in this section. The information contained herein is for informational purposes, and although the list of advisors presented in this section is drawn from sources believed to be reliable and independently reviewed, the accuracy or completeness of this information is not guaranteed. No person or firm listed in this section should be construed as an endorsement by Worth®, and Worth® will not be responsible for the performance, acts or omissions of any such advisor. It should not be assumed that the past performance of any advisors featured in this special section will equal or be an indicator of future performance. Worth®, a Sandow Media publication, is a financial publisher and does not recommend or endorse investment, legal or tax advisors, investment strategies or particular investments. Those seeking specific investment advice should consider a qualified and licensed investment professional. Worth® is a registered trademark of Sandow Media LLC. See “About Us” for additional program details at http://www.worth.com/index.php/about-worth.