A Bespoke (Investment) Portfolio
Scottish philosopher and author Thomas Carlyle said, “Neither in tailoring nor in legislating does man
proceed by mere accident.” So too can this be said for bespoke investment portfolios. Over the next
several paragraphs we’ll explore what it means to have a ‘tailored’ approach to investing, how it
benefits investors and why it is not more popular.
Similar to a custom-made suit, a tailored investment portfolio is made specifically for the needs and
desires of a particular investor. Like the fabric that goes into making a suit, one does not need to change
the original fabric for every suit, but rather shape it around a specific client.
For example, many financial advisors will use models for different types of investors and their respective
risk tolerance and goals. While that is useful and resourceful, it can often be ‘bulky’ at times or too
‘tight’ at others. There are ways to customize and shape a model around each particular client’s
objectives and needs.
If it’s possible to appreciate the difference between an ‘off the rack’ portfolio and one that is ‘custom
fitting,’ it makes sense to understand the benefits of this approach. Because we are all different and no
two investors, whether an individual or institution, will have exactly the same investment profile, it only
makes sense to develop a custom portfolio for each client. This requires taking the time to learn what
an investor needs, understand how they react to different market environments and continue to modify
the portfolio based on the markets and their particular financial goals. This can ultimately reduce the
anxiety of the ups-and-downs of the market and perhaps most importantly keep the investor on the
path to achieve their goals.
It should be no surprise that all of this takes time and is never easy. While style is the essence of man,
hard work cannot be fabricated. There are those that manufacture one suit after another or one
portfolio after another, and there are those that take the time and create just the right fit. As designer
Gabrielle “Coco” Chanel said, ‘fashion passes, style remains;’ this could not be truer in money
management as well.
Brian Exelbert is a Financial Advisor with Morgan Stanley Wealth Management in Coral Gables, FL. The
information contained in this interview is not a solicitation to purchase or sell investments. Any
information presented is general in nature and not intended to provide individually tailored investment
advice. The strategies and/or investments referenced may not be suitable for all investors as the
appropriateness of a particular investment or strategy will depend on an investor's individual
circumstances and objectives. Investing involves risks and there is always the potential of losing money
when you invest. The views expressed herein are those of the author and may not necessarily reflect the
views of Morgan Stanley Wealth Management, or its affiliates. Morgan Stanley Smith Barney, LLC,
member SIPC.