Portfolio Construction and Diversification
Hayek Kallen uses individual securities (stocks and bonds) when building portfolios for our clients. An appropriate level of diversification can be achieved with 20 to 30 individual securities that are invested in a number of sectors and geographies. This approach provides our clients with a focused group of holdings and in turn more visibility and a higher degree of understanding can be obtained. Attention is paid to ensure that no single security comprises more than 10% of a portfolio, which serves to lessen volatility. Since 1985 we have used this investment approach to guide us and make sound financial decisions at Hayek Kallen Investment Management over a number of different market and economic cycles.