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Rain Capital Management

We use our understanding of risk to drive opportunity, so our clients can enjoy better risk-adjusted returns and smoother sailing.

Our Difference

It’s not difficult to minimize uncertainty but most investors leave valuable opportunities on the table in the process. That’s why risk management can’t just be about eliminating volatility; it must also be about illuminating opportunity.

At Rain Capital, we use our understanding of risk to drive opportunity

Perceptions about risk are often incorrect, causing investors to be overly conservative in the wrong places and too aggressive elsewhere. At Rain Capital, we believe opportunity presents itself when risk is misjudged by the broader market. Early explorers bucked the conventional wisdom of their time by using the most modern science available to dispel certain dangers – sailing across a flat earth, for instance – and to prepare for other, more real dangers – ensuring the crew would have enough rations to make it across the globe. This type of methodical homework and preparation obviously paid off.

Investing today has become infinitely more complex and even more prone to error. The response has been to use the crude tool of asset allocation, which treats uncertainty as an unknown, the great void at the edge of the earth. Not knowing what could go wrong, investors attempt to diversify by spreading assets across a myriad of investments hoping to avoid having all their eggs in one basket. This is the conventional wisdom of our time, a shortcut that fails to appreciate how these various baskets are connected.

Investment managers who follow this conventional wisdom may end up being too cautious, foregoing opportunities. Yet others, overconfident in the safety promised by these tools, take reckless wagers that asset allocation was never intended to mitigate. When volatility does rear its head – whether as a currency crisis, a dot com collapse, or as a global credit crisis – conventional portfolios are poorly prepared to deal with the specifics of each situation.

At Rain Capital, we believe that in the pursuit of opportunity, we shouldn’t have to choose between navigating close to the shoreline and riding aboard the Titanic. Rather, we use the most modern tools available to more accurately define the exposures we want to take and to avoid the unnecessary ones. Still further, these tools allow us to better control real risk far more effectively than conventional diversification approaches.

At Rain Capital, we use data to better understand where risk is building up and diversification is dwindling. In doing so, we can better differentiate between assets that are truly valuable and those that may appear so but are vulnerable to broader economic forces. Charting opportunities then becomes a process, not of erring on the side of being conservative or aggressive, but of mapping out the contours of the market such that we can mitigate the true dangers and capture opportunities along the way.

In doing so, we ensure that knowledge, rather than convention, illuminates the course to opportunity and that risk is an active choice, not the by-product of faulty portfolio construction. The payoff to our clients of this homework and preparation is better risk-adjusted returns and smoother sailing.

Our Approach

Our approach is simple: We are fiduciaries and our clients’ interests are paramount. To this end, our work is defined by evidence-based practice that integrates three basic principles in our comprehensive wealth management approach:

1.  The best available research evidence bearing on portfolio construction

  • We utilize primary research and a rigorous understanding of data – not traditions or conventions – when doing our work. Our practice incorporates not only longer-term fundamental research and manager due diligence but also the shorter-term analysis that provides insight into significant underlying shifts in markets.

  • We provide objective advice: a business structure and investment approach that ensures independence and limits conflicts of interest.

  • We focus on minimizing fees and tax costs.

2.  Our professional expertise and judgment

  • We offer a team of subject experts with deep experience in portfolio management, risk management, investment research, wealth planning and client service.  Each client benefits from a collaborative approach to ensuring that they receive comprehensive expert advice and sound judgement.

  • We collaborate with each client’s outside tax, estate, and accounting service providers to ensure a seamless and optimized financial picture for the client.

3.  A client’s individual goals and values

  • We endeavor to understand the particular circumstances of each client and develop our advice accordingly.

  • We seek competitive after-tax, risk-adjusted rates of return given their respective objectives and values.

  • We incorporate a thorough understanding of a client’s financial objectives, needs, individual passions and personal values into our services. Depending on client interests, we utilize impact investing as a powerful means to align their investments with their personal values.

Customized Core Portfolios

We use institutional, no-load mutual funds, exchange traded funds (ETFs) and alternative investments (where appropriate) to create portfolios characterized by dependable diversification, lower volatility, greater predictability, and competitive risk-adjusted returns. We create opportunity both by finding misunderstood areas of the market and by mitigating risk. Our access to top-tier investment managers allows us to offer investment opportunities that are truly unique in the marketplace. For more on our Core Portfolio approach, please visit our Library.

Customized Impact Portfolios

Impact investing means different things to different people.  For some, it’s an opportunity to put their money to work having a positive impact on the world, while others seek to align their portfolios with their personal values, often targeting a specific mission or set of values. Still others simply seek to “do no harm” by screening out objectionable businesses or practices from their investment portfolios.  While there’s no right or wrong approach to incorporating values into a portfolio, there is one thing these various approaches have in common that can contribute to better portfolio outcomes; that is that incorporating environmental, social and governance (ESG) considerations into portfolio construction has been shown to improve risk-adjusted returns and make for more resilient portfolios in down markets. 

We’ve been engaged in impact investing longer than most and have deep expertise throughout the impact investing ecosystem.  We have more than a decade of experience developing research and working with clients to build portfolios that are aligned with their values.  For more about our Impact investing approach, please  visit our Impact Investing page.

Our Services

Rain Capital Management is an independent privately-owned Registered Investment Advisor formed in 2011.  Our clients are families, private foundations, and non-profit organizations. We offer a suite of wealth management services that complement portfolio management: retirement planning, wealth transfer, legacy planning and philanthropic strategies. We manage in excess of $300 million and have a business model designed to maintain a boutique setting in order to focus exclusively on serving a limited number of clients.

We are your fiduciary. You get the full extent of our expertise,
always in the form of conflict-free and candid advice. We focus on long-term thinking with an eye toward maximizing the impact of your wealth.

Investment Management
  • Portfolio construction

  • Risk management

  • Tax-efficient strategies

  • Solutions for concentrated / illiquid holdings

  • Manager due diligence

Legacy Planning
  • Donor-advised accounts

  • Personal charitable giving

  • Foundation giving

  • Multi-generational financial education

  • Coordination with outside legal and tax advisors

Wealth Planning
  • Goals-based planning

  • Retirement planning

  • Ad-hoc scenario planning

  • Multi-generational wealth transfer

  • Business transition planning

Our Team

Our team brings an extraordinary diversity of expertise to bear in serving our clients in a discipline where experience and skill matter.

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Chief Investment Officer
Managing Director
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Senior Client Adviser/ Portfolio Manager
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Chief Portfolio Strategist
Managing Director
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Senior Client Service Specialist
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Chief Operating Officer
Managing Director
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Senior Client Service Specialist
Our Library

The current economic expansion entered its 11th year in July (the longest in recorded history) and there are currently enough early warning indicators of recession to justify a quick look…

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