Baffin Advisors

Specifically, at Baffin, we design portfolios that maintain the wealth in real terms through time, and therefore it is key to protect the assets against the depreciation of the Dollar. Our portfolios include over 15% in commodities, which is diversified into energy, materials, and agriculture. Our allocation for stocks is around 30-35%, of which le... ss than a third is in the S&P500 (which has a big exposure to multinational stocks), and the rest is allocated to non-US companies, such as Asia, Latin America and to a lesser degree Europe. We have allocated 40% of the portfolio into fixed income, and we have diversified across currencies and inflation linked instruments. We have limited our direct allocation to the Dollar to 50% of the portfolio and we have taken advantage of hedging instruments to reduce that exposure even further. We believe that we will continue to observe a non trivial depreciation (but not secular) of the G3 currencies. Therefore portfolio allocation has to take into account the purchasing power of wealth.Read More