Our Origin and Philosophy
V2 Financial Group (hereby referred to as V2) was founded by Venkat Krishnamurthy and Venkata Vedam with the objective of providing access to high quality, unbiased investment management services with no barriers. Sophisticated investment management services have traditionally been available only to wealthy investors, and have often been delivered in a commission driven environment. V2's mission is to expand the availability of sophisticated investment advice to a broader group of clients. We believe that anyone, regardless of their current net worth and income, can successfully build wealth through sound investment planning.
Investment Philosophy and Approach
We believe that intelligent asset allocation, deep and broad diversification (across multiple asset classes) and disciplined rebalancing are the keys to capturing long term capital market returns. In addition, we believe that markets can occasionally become irrational, providing opportunities for tactical portfolio allocation changes based on valuations, investor behavior and macroeconomic conditions. Our investment strategy centers around developing a risk based strategic asset allocation model for each client (as laid out in an Investment Policy Statement "IPS") and implementing that strategy primarily through stock, bond and commodity mutual funds and Exchange Traded Funds (ETF's). Ongoing revisions to the portfolio are made as dictated by global and macroeconomic events or changes in clients' individual circumstances. Once an asset allocation is developed, it is rebalanced periodically as well as on an opportunistic basis.
- Risk based customized portfolio
We believe in the "one shoe does not fit all" philosophy. We assess each client's goals, risk tolerance and investment circumstances (e.g. cash needs, tax situation) to design and manage an investment portfolio customized to that client's situation.
- Sophisticated investment model and a disciplined process
Our comprehensive investment process blends modern portfolio theory, macroeconomic, fundamental and technical analysis. Macroeconomic and fundamental analysis helps us to understand the current investing environment. Technical analysis is used to identify trends (market momentum) and buying/selling opportunities. Modern portfolio theory provides the framework for building optimized portfolios that aim for the highest possible return for a certain level of risk (volatility) assumed.
- Unbiased, Conflict-free, Pure advice. No commissions. Lower cost
As a fee based, independent financial advisory firm, V2 Financial Group does not earn commissions from any investments made on behalf of clients. This means our recommendations are unbiased and neutral across different investment products (e.g. one mutual fund company versus another) and are based solely on merit of the investment. Since we operate as a fiduciary, you can be assured that there are no conflicts of interest, and no hidden agendas. We heavily utilize low-cost funds, including Exchange Traded Funds and Index funds, to limit expenses and to give our clients the opportunity to capture more of the market's return. Before selecting a fund, we look at many facets, such as the experience of the manager, management style, level of diversification, reputation of the fund, expenses, consistency / discipline, and historical performance compared to benchmarks.
- Ongoing focus on best practices & academic research
While our model and process incorporate existing best practices and thought processes, we are always seeking newer and more efficient means to introduce academic research, emerging methodologies and new investment products. We also continuously evaluate the relevance of conventional approaches as new products become available and as the investing landscape changes over time. Our disciplined investment process addresses common "behavioral finance" biases, such as "myopic loss aversion" (holding on to a losing position rather than cutting losses and redeploying the funds in a more promising investment), "herding" (following the crowd or chasing a hot trend), and "overconfidence". We actively follow and invest in mutual funds from Dimensional Funds Advisors (DFA), a unique pioneer in the financial engineering and research space.
- Use of derivatives to hedge risk and supplement income
We occasionally use options to either reduce volatility or to generate additional income. Conservative options strategies can serve as a mechanism to generate excess returns. We may also use options as an insurance mechanism. Finally options may also enable us to set target prices to buy or sell certain stocks and ETF's (Exchange Traded Funds).
- Holistic approach. Investments handled with integrity and intelligence.
When you entrust your money to us, you can be assured that it is handled with the highest level of integrity, with your best interests in mind. Our investment process strives to be holistic, by incorporating financial planning for major life goals such as retirement and your children's education. Both the principals of V2 Financial group hold MBA's from the University of Chicago, a school renowned for its Finance program.
WHY V2? The V2 investing model incorporates the keys to successful investing and brings intelligence and integrity to your investments.
When you engage V2 Financial Group to manage your investments, we will:
- Help you articulate short, medium and long term goals, providing clarity and focus to your financial future.
- Manage your investments by implementing a globally diversified portfolio (paying particular attention to a high level of diversification and the use of lower cost funds), tailored to your risk tolerance and goals.
- Conduct timely and opportunistic rebalancing. Buy on dips and sell during market run-ups.
- Provide unbiased services through our competitive and commission-free fee structure.
- Assist you in making tax and inflation smart investment decisions.
- Incorporate management of your active workplace retirement accounts to ensure that all your investments are aligned to your goals.
- Enable you to avoid the pitfalls of behavioral finance as a neutral, unemotional third-party.
- Leverage our expertise, tools and well defined processes to your benefit.
All of this and more enables you to enjoy a worry-free investment life, and thereby focus on your family, work, and the things that matter the most to you.
Venkata Vedam possesses an M.B.A in Finance, Strategy and Entrepreneurship from the University of Chicago, Booth School of Business. Venkata also holds a Master's degree in Electrical Engineering and Computer Sciences from the University of Illinois at Chicago. Prior to founding V2, Venkata worked for 8 years in technology and management roles at various Fortune 500 companies. In 2001, Venkata founded Millennium Financial and Business Services, Inc., a company involved in building and consulting for small businesses at multiple levels. Venkata has also built a successful mortgage origination business, assisting a range of customers from first time home buyers to established real estate investors. Venkata has been involved in originating more than $1 Billion in mortgages.
Venkat Krishnamurthy possesses an M.B.A in Finance & Marketing from the University of Chicago, Booth School of Business. Venkat also holds a Master's degree in Operations Research from the University of Texas at Austin, and a B.S. in Mechanical Engineering from the Indian Institute of Technology. Prior to founding V2, Venkat spent 10 years at a Fortune 500 corporation, and 1 1/2 years at Edward Jones Investments, one of the largest brokerage firms in the country. In his corporate life, Venkat held positions of increasing responsibility, in the areas of Information Technology, Planning, Finance, and Corporate Security.
Sharmila Vedam, a licensed CPA, also possesses a MS in Taxation from DePaul University, Kellstadt Graduate School of Business. Sharmila holds a BA in Accounting from Aurora University. Prior to joining V2, Sharmila spent 4.5 years at Ernst & Young and 2 years with Calamos Asset Management.