Why We Invest for the Long Term
By Darrelyn Brennan, CFP
Chair, Community Foundations of the Hudson Valley Investment Committee
At the core of our Investment Committee's work is a consistent focus: how to steward charitable assets responsibly, particularly in a market environment increasingly shaped by concentration, shifting sentiment, and geopolitical uncertainty.
At our recent Fundholder Webinar—Investment Update & Community Insights—I shared how we approach that responsibility. I want to take a moment to share a few of those insights more broadly, because they speak directly to how your funds are managed and why.
A Thoughtful, Diversified Approach
Our primary investment pool is designed to balance growth and stability over time. We invest across a mix of strategies, including:
- U.S. and international stocks
- Large, mid-sized, and smaller companies
- Index funds and actively managed portfolios
- Bonds and other fixed income investments
We also work with a select group of investment managers who each bring a specific area of expertise.
This diversified approach is intentional. Markets don't move in straight lines, and different types of investments perform well at different times. By spreading investments across many areas, we aim to build a portfolio that can weather a wide range of conditions.
Why Results Can Vary Year to Year
Last year, markets were strong overall, and our portfolio delivered a solid return. At the same time, we did not fully keep pace with the benchmark.
The primary reason is that a small number of very large, fast-growing companies drove a significant portion of market gains. Because we are broadly diversified—and do not concentrate heavily in any one segment—we didn't capture all of that upside.
That is a deliberate choice.
Staying Disciplined in a Fast-Moving Market
It can be tempting to shift investments toward whatever has performed best most recently. But markets often move quickly in response to headlines—whether related to global events, policy changes, or new technologies.
Over time, those short-term reactions tend to settle, and what matters most are the fundamentals: strong businesses, sustainable growth, and reasonable valuations.
Our approach is to stay disciplined—focusing on long-term fundamentals rather than reacting to short-term trends.
Investing for Generations, Not Just Years
Perhaps the most important point is this: we are not investing for a short-term goal.
Unlike personal portfolios, which are often built around a single lifetime, the funds we manage are designed to support the community for generations to come. That means:
- Providing steady, reliable support to nonprofits each year
- Preserving and growing the value of funds over time
- Ensuring that today's generosity continues to make an impact far into the future
Because of this long-term perspective, we make decisions with durability in mind—even if that means we won't always lead in every market environment.
A Steady Approach in Uncertain Times
Today's headlines—from global conflicts to economic uncertainty—can create understandable concern. Historically, however, markets have shown resilience, and short-term disruptions do not always lead to long-term change.
We continue to monitor these developments carefully, but our focus remains on maintaining a steady, thoughtful investment approach.
Looking Ahead
As the funds we steward continue to grow, we are also strengthening our processes—enhancing how we evaluate performance and ensuring we are making the best possible decisions on your behalf.
We are deeply committed to managing these assets with care, discipline, and a long-term perspective.
Thank you for the trust you place in us. It is what allows us to support this community—today and for generations to come.
