Portfolio Construction

How We Build Portfolios

At Sirmium Capital, we keep our portfolio construction deliberately straightforward. Rather than building something different from scratch for every conversation, we work from five portfolio models — each one a structured starting point that reflects a different balance between growth and stability.

A Framework, Not a Menu

Our Five Portfolio Models

The models below are meant to show how we think about putting a portfolio together: what goes in, roughly how much, and why. They are a framework, not a sales menu — a way to understand our approach before any individual situation enters the picture.

Model	Conservative	Moderate Conservative	Core	Moderate Aggressive	High Growth
Equities	20–30%	40–50%	60–70%	80–90%	95–100%
Fixed Income / Cash	60–70%	40–50%	20–30%	5–15%	0–5%
Alternatives	0–10%	5–10%	5–10%	0–5%	0–5%
Holdings	20–30	18–25	15–22	12–18	8–12
Max Single Position	3–5%	4–6%	5–8%	6–10%	8–12%

Scroll horizontally to compare all five models.

Model by Model

The Five Models in Detail

Model 01

Conservative

Built to lean on stability, with a smaller equity stake and a larger base of bonds and cash.

Equities20–30%
Fixed Income / Cash60–70%
Alternatives0–10%
Holdings20–30 positions
Max Single Position3–5%

Model 02

Moderate Conservative

A roughly even footing between growth assets and stabilizing assets, tilted slightly toward caution.

Equities40–50%
Fixed Income / Cash40–50%
Alternatives5–10%
Holdings18–25 positions
Max Single Position4–6%

Model 03

Core

A growth-oriented balance, with equities carrying most of the weight and a meaningful cushion of bonds and cash.

Equities60–70%
Fixed Income / Cash20–30%
Alternatives5–10%
Holdings15–22 positions
Max Single Position5–8%

Model 04

Moderate Aggressive

Heavily weighted toward equities, with a thinner stabilizing layer for those comfortable with more movement along the way.

Equities80–90%
Fixed Income / Cash5–15%
Alternatives0–5%
Holdings12–18 positions
Max Single Position6–10%

Model 05

High Growth

An almost fully invested equity portfolio, concentrated in fewer holdings and built for the highest tolerance for volatility.

Equities95–100%
Fixed Income / Cash0–5%
Alternatives0–5%
Holdings8–12 positions
Max Single Position8–12%

What Goes In

Our Investment Approach

We build these portfolios from three kinds of building blocks.

Equities

High-quality public stocks and equity ETFs — companies with strong fundamentals and durable competitive advantages. This is the engine of the growth-oriented models.

Fixed Income & Cash

Investment-grade bonds, government securities, and cash equivalents. These are there to dampen volatility, generate income, and aim to preserve capital — the steadier counterweight to equities.

Alternatives

REITs, infrastructure, and specialty ETFs. We use them selectively, for opportunistic diversification when the situation calls for it.

Position sizes are actively managed, and the limits get tighter in the more conservative models — the idea being that the steadier the portfolio's purpose, the less weight any single holding should carry.

Built In, Not Bolted On

How We Manage Risk

Risk management runs through everything above, not as an afterthought.

It shows up as real diversification, intentional position sizing, and a habit of asking what could go wrong before asking what could go right. We tend to hold positions materially longer than the average institutional investor, because we'd rather give good decisions room to work than react to every twitch in the market.

Portfolios are monitored on an ongoing basis, and we rebalance selectively — driven by fundamentals, valuations, and changing conditions, not by short-term noise.

"We'd rather give good decisions room to work than react to every twitch in the market."

— Sirmium Capital Investment Process

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Sirmium Capital offers five portfolio models that serve as structural guidelines. Actual allocations may vary based on client-specific considerations.

Sirmium Capital, LLC is a registered investment adviser. The information on this page is for educational purposes only and is not personalized investment advice.