Steve Luchko joined Agili as an Investment Analyst in our Bethlehem, PA office in August. Steve works with Agili’s Financial Strategists to review and monitor client investment portfolios.  He also researches and analyzes potential investment opportunities for Agili’s Investment Policy Committee.

Agili: Tell us a little about your school and work history.

SL: Before joining Agili, I worked at Legacy Advisors as its Senior Research Analyst. At Legacy, I conducted investment manager due diligence, sourced investment strategies and developed strategic asset allocation models. Prior to my time at Legacy, I was a Senior Listings Analyst at the New York Stock Exchange (NYSE) in lower Manhattan. I have a Bachelor of Science in Finance from The University of Scranton and a Master of Business Administration from Villanova University.

Agili: What aspect of your job do you enjoy the most?

SL: I enjoy finding new investment ideas. Some of the best ideas come about in the most unexpected ways. It is perpetually about keeping an open mind and open network in finding great investment solutions.

Agili: How are you looking forward to helping clients at Agili?

SL: It has been ingrained in my training to find investment solutions that will provide a reasonable risk-adjusted return which just means receiving a fair return per unit of risk. The math is quite simple; if we can find investments that are less volatile but with competitive returns to a particular peer group we will compound for our clients at a higher rate over time. Risk control is important in every decision I make for our clients. I will make it my mission to ensure risk control is a continued part of our investment philosophy.

Agili: What are your favorite publications or blogs?

SL: The Economist and The Wall Street Journal are always great reads. Knowledge Leaders Capital, 361 Capital and Pension Partners put out very respectable blogs.

Agili: What advice would you give to long term investors?

SL: Effective capital allocation requires a certain temperament. To be successful one needs to be dispassionate and probabilistic. A great investor needs to look inward and admit fallibility through humility. This can be done by creating a portfolio that is diverse enough to be humble but focused enough to offer a shot at longer-term outperformance. Long term investing is all about finding that sweet spot between hubris and cowardice.

A helpful trick is to automate the process of contrarianism by establishing rules of engagement during peacetime when things are calm. Simple rules and checklists will do what the brain knows best but the heart and stomach have trouble accomplishing. Simple self-imposed rules and checklists systematically defeats human discretion all of the time.

Agili: Anything else?

SL: Go Phillies!