WealthManagement.com interviewed investment leaders from some of the largest RIAs in the industry to gain insights into their allocation adjustments, their stance on risk (whether they are "risk on" or "risk off"), and some of the unconventional investment choices they are making.

1. Cresset CIO, Jack Ablin 

• Ablin shared that in 2022, Cresset maintained a significant allocation to gold in their growth strategy. In 2023, the company decided to reconfigure its portfolio. They reallocated half of their gold position into internationally developed markets at the start of the year. The company's current standout pick is private credit. Ablin stated that the company is particularly drawn to its quality and the floating-rate nature of the coupon it offers, which is currently yielding between 11.5% and 12%. 

2. Carson Group Chief Market Strategist, Ryan Detrick 

• According to Detrick, the RIA increased its equity exposure. The company has maintained an overweight position in stocks, perceiving no signs of a recession and anticipating the bull market to persist.

3. Mercer Advisors, CIO Donald Calcagni 

• The RIA has re-extended the duration in its fixed-income portfolios. After shortening it to less than two years in January 2022, the company extended it back closer to five years in July 2023. Calcagni shared that he believes that non-U.S. equities remain attractively priced due to their valuations, the strength of the U.S. dollar, political instability in the U.S., and the growing federal debt.

4. Wealth Enhancement Group, Vice President of Portfolio Consulting Gary Quinzel

• Wealth Enhancement Group recently adjusted the international portion of our equity investments. Specifically, increasing its allocation to large-cap developed international stocks while reducing its exposure to small-cap international stocks. Quinzel shared that the RIA has a slight bias towards value investing, which has not been in favor this year. 

5. Fidelis Capital Partners, Investment Research Analyst Nick Smith

• Fidelis Capital Partners intends to expand its level of interest rate risk. The firm believes long-term interest rates are much closer to their peak for this cycle than at the beginning of the year. 

6. Crescent Grove Advisors, Co-CIO Andrew Krei

• The firm is increasing its fixed income allocations of higher quality and extending duration. Simultaneously, the firm has reduced holdings in segments that have performed well this year. In the realm of alternatives, they are making commitments to venture capital and private equity strategies to capitalize on a more favorable valuation environment. Additionally, the firm is investing in private credit funds. 

7. NewEdge Wealth, CIO Cameron Dawson 

• The firm has decided to maintain its quality focus in portfolios in 2023. Dawson shared that the firm has been experiencing higher equity volatility in August and September, and quality has begun to shine again as the riskier parts of the market reversed the majority of their summer gains. 

8. Beacon Pointe, CIO Michael Dow, and Director of Risk Management and Securities Research Julien Frazzo

• The firm has added a long-duration trade that it believes will benefit clients. The firm has also increased and put more money into U.S. large companies that they believe are undervalued and reduced their investment in U.S. large companies that have been growing fast because they expect the economy to grow more slowly.

9. Cerity Partners, CIO Ben Pace 

• The firm recently decided to reduce its allocation to U.S. large-cap stocks from being significantly overweight in its model portfolios to an equal weight. According to Pace, the firm's top contrarian choice at the moment, the interest rate spreads in the high-yield debt asset class are not appealing enough to compensate investors for the risks associated with an economic slowdown or the refinancing risk that comes with maturing debt in the coming years. 

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