Morningstar Advisor - April/May 2009 - 17

Advisor Profile The Classics By Ilana Polyak For clients with a long-term horizon, Mark Rosenbaum and Jana Basden say that nothing beats good ol’ asset allocation. With markets suffering from their worst performance in decades, it might be easy to try something a little more innovative than stocks, such as short positions, puts—anything to avoid further damage. But for one moneymanagement firm in Portland, Ore., classic asset allocation still holds plenty of appeal. “My sense is that the market is heading up over time,” says Mark Rosenbaum, managing partner of Rosenbaum Financial. “We don’t want to time the market, and we try to diversify to the greatest extent possible.” The Silo Approach Rosenbaum added staff who had the relevant areas of expertise. Investments were a natural offshoot of this progression, as clients then needed help managing pension assets. Much of the company’s growth stems from the investment side now. Today, the firm aims to manage all aspects of a client’s financial life, so it is moving away from this silo system into a more integrated model. In addition to being registered investment advisors and stockbrokers, the associates are also charter life underwriters. “The client will have one main contact at the firm, but we’re getting to the point where they are also comfortable speaking with different members of the team,” Rosenbaum says. The Investment Side many years, with about a 30% weighting. That reflects Rosenbaum’s view that the recovery, just like the downturn, will be global. Domestic stocks add another 50%, and alternative investments make up the balance. In the past, Rosenbaum and Basden maintained positions in emerging markets and Europe, but today they emphasize Europe’s more-established economies, such as Switzerland. The alternative portion of the portfolio, which has always included real estate, now includes timber, agriculture, and metals. The firm makes a point of not betting on or against any particular sector or region. “Take our commodities or alternative positions,” Rosenbaum says, “We’ve got 50% in North America and 50% outside.” At the same time, there is a smattering of small and large caps and emerging markets, all in the conviction that these segments will be contributors to performance in the long run. “We believe that there is a historical reason to suggest that small caps will perform well, but there is just as much of a case to be made that emerging markets will provide accelerated performance in comparison to the U.S. in coming out of the recession,” Rosenbaum says. Because of that approach, their portfolios are benchmarked against the MSCI World Index. You would expect such a belief in the long-term possibility of markets from a firm that started in 1957 when Rosenbaum’s father, Fred, began selling life insurance and other insurance products to local business owners. Mark and the elder Rosenbaum started the current company in 1982 and called it Rosenbaum & Rosenbaum. Together, they expanded into other areas, such as executive compensation, estate planning, and benefits management, including pensions. They later changed the name to Rosenbaum Financial to better reflect the broader nature of their expanding business. As more capabilities were added and the firm expanded into these different areas, Jana Basden handles investments for the firm. Basden’s background is in security selection and stock trading, but she also has a certified financial planner designation. Rosenbaum and Basden pit various market segments against one another to find the best prospects among different securities. They emphasize investments that have had significant outperformance over time and look for those that can continue to outperform for the next 20 years or so. Today, the portfolio tilts more toward international stocks than it has in MorningstarAdvisor.com 17
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Morningstar Advisor - April/May 2009

Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2009

Morningstar Advisor - April/May 2009
Contents
New on MorningstarAdvisor.com
Letter from the Editor
Contributors
Did Diversification Fail Investors?
Accounting for His Success
The Classics
Investment Briefs
A Multiple-Lens Approach to Analysis
Where Leverage Lurks
Guide to Finding Hidden Risks
How Leveraged ETFs Compound the Misery
Get Rid of the Dead Weight
Grounded Manager
Investors Should Mind Their Tails
Four Picks for the Present
The Future of Big Pharma
Yield Your Clients Can Use
Wide Moats, Good Stewardship: A Potent Bear-Market Combination
Mutual Fund Analyst Picks
50 Most Popular Equity ETFs
Undervalued Stocks
New at Morningstar
To Beat the Devil
Morningstar Advisor - April/May 2009 - Intro
Morningstar Advisor - April/May 2009 - Morningstar Advisor - April/May 2009
Morningstar Advisor - April/May 2009 - Cover2
Morningstar Advisor - April/May 2009 - 1
Morningstar Advisor - April/May 2009 - 2
Morningstar Advisor - April/May 2009 - Contents
Morningstar Advisor - April/May 2009 - 4
Morningstar Advisor - April/May 2009 - 5
Morningstar Advisor - April/May 2009 - New on MorningstarAdvisor.com
Morningstar Advisor - April/May 2009 - 7
Morningstar Advisor - April/May 2009 - 8
Morningstar Advisor - April/May 2009 - Letter from the Editor
Morningstar Advisor - April/May 2009 - Contributors
Morningstar Advisor - April/May 2009 - 11
Morningstar Advisor - April/May 2009 - Did Diversification Fail Investors?
Morningstar Advisor - April/May 2009 - 13
Morningstar Advisor - April/May 2009 - Accounting for His Success
Morningstar Advisor - April/May 2009 - 15
Morningstar Advisor - April/May 2009 - 16
Morningstar Advisor - April/May 2009 - The Classics
Morningstar Advisor - April/May 2009 - 18
Morningstar Advisor - April/May 2009 - 19
Morningstar Advisor - April/May 2009 - Investment Briefs
Morningstar Advisor - April/May 2009 - 21
Morningstar Advisor - April/May 2009 - 22
Morningstar Advisor - April/May 2009 - 23
Morningstar Advisor - April/May 2009 - 24
Morningstar Advisor - April/May 2009 - A Multiple-Lens Approach to Analysis
Morningstar Advisor - April/May 2009 - 26
Morningstar Advisor - April/May 2009 - 27
Morningstar Advisor - April/May 2009 - 28
Morningstar Advisor - April/May 2009 - 29
Morningstar Advisor - April/May 2009 - 30
Morningstar Advisor - April/May 2009 - 31
Morningstar Advisor - April/May 2009 - Where Leverage Lurks
Morningstar Advisor - April/May 2009 - 33
Morningstar Advisor - April/May 2009 - 34
Morningstar Advisor - April/May 2009 - 35
Morningstar Advisor - April/May 2009 - Guide to Finding Hidden Risks
Morningstar Advisor - April/May 2009 - 37
Morningstar Advisor - April/May 2009 - 38
Morningstar Advisor - April/May 2009 - 39
Morningstar Advisor - April/May 2009 - How Leveraged ETFs Compound the Misery
Morningstar Advisor - April/May 2009 - 41
Morningstar Advisor - April/May 2009 - Get Rid of the Dead Weight
Morningstar Advisor - April/May 2009 - 43
Morningstar Advisor - April/May 2009 - 44
Morningstar Advisor - April/May 2009 - 45
Morningstar Advisor - April/May 2009 - 46
Morningstar Advisor - April/May 2009 - 47
Morningstar Advisor - April/May 2009 - 48
Morningstar Advisor - April/May 2009 - 49
Morningstar Advisor - April/May 2009 - Grounded Manager
Morningstar Advisor - April/May 2009 - 51
Morningstar Advisor - April/May 2009 - 52
Morningstar Advisor - April/May 2009 - 53
Morningstar Advisor - April/May 2009 - Investors Should Mind Their Tails
Morningstar Advisor - April/May 2009 - 55
Morningstar Advisor - April/May 2009 - 56
Morningstar Advisor - April/May 2009 - 57
Morningstar Advisor - April/May 2009 - Four Picks for the Present
Morningstar Advisor - April/May 2009 - 59
Morningstar Advisor - April/May 2009 - 60
Morningstar Advisor - April/May 2009 - The Future of Big Pharma
Morningstar Advisor - April/May 2009 - 62
Morningstar Advisor - April/May 2009 - 63
Morningstar Advisor - April/May 2009 - Yield Your Clients Can Use
Morningstar Advisor - April/May 2009 - 65
Morningstar Advisor - April/May 2009 - Wide Moats, Good Stewardship: A Potent Bear-Market Combination
Morningstar Advisor - April/May 2009 - 67
Morningstar Advisor - April/May 2009 - Mutual Fund Analyst Picks
Morningstar Advisor - April/May 2009 - 69
Morningstar Advisor - April/May 2009 - 70
Morningstar Advisor - April/May 2009 - 71
Morningstar Advisor - April/May 2009 - 50 Most Popular Equity ETFs
Morningstar Advisor - April/May 2009 - 73
Morningstar Advisor - April/May 2009 - Undervalued Stocks
Morningstar Advisor - April/May 2009 - 75
Morningstar Advisor - April/May 2009 - 76
Morningstar Advisor - April/May 2009 - 77
Morningstar Advisor - April/May 2009 - 78
Morningstar Advisor - April/May 2009 - New at Morningstar
Morningstar Advisor - April/May 2009 - To Beat the Devil
Morningstar Advisor - April/May 2009 - Cover3
Morningstar Advisor - April/May 2009 - Cover4
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