Every investor is familiar with the patience adage, which has long advised investors to shun trends and not adhere to them. So what happens next? A long-term investment strategy isn’t adequate, according to the Chairman of Diffractive Managers Group, John Hailer.

“It’s simple to advise investors that they should think long term. Yet, as an industry, we must improve our ability to construct the sorts of investment portfolios that will assist investors in getting there.”

For Exec at Natixis John Hailer, this implies true diversification, which includes not just returns but also short- and long-term volatility and risk. Portfolios that can survive market fluctuations retain more investors involved in the long term.

According to John Hailer remaining involved is one of the most important factors in long-term success. He says that it is impossible I time the market or wait out a recession.

Putting Concepts Into Action

When John Hailer took over as CEO of Natixis soon after the Great Financial Crisis, he was keen to put his ideas into action.

The firm extensively engaged in research, establishing the Durable Portfolio Construction Research Center and dramatically expanding its operations to encompass a global network of expert consultants, replicating its traditional fund distribution approach.

What’s the catch? The new portfolio services presented by the company were available to investment professionals for free. They were “product-agnostic,” advising products and investment strategies that were appropriate for the customer irrespective of whether they were distributed by Natixis or a rival.

Natixis went to $900 billion in assets from $130 billion under the new management in 15 years. Moreover, the program acted as the spearhead for a tidal change in the investing sector during the last decade.