Firm: Alaska Wealth Advisors
Name: Dave Valdez
Location: Anchorage, AK
Team Custodied Assets: $934 million
Background: Anchorage native Dave Valdez immigrated to the United States with his family from the Philippines in 19tk. His mother worked for the State of Alaska and would save every dividend check from Alaska’s Permanent Fund Dividend, an annual payment distributed to residents from the state’s oil revenues, to put him through college. Valdez earned an undergraduate finance degree from Seattle University and a master’s from the University of Alaska Anchorage. After working for Charles Schwab and TD Ameritrade, and consulting for hedge funds and RIAs in the Pacific Northwest, Valdez returned home in 2022 to join Alaska Wealth Advisors. The RIA—launched in 2013 and backed by investment firm Alaska Permanent Capital Management—now has 23 people in Anchorage serving roughly 650 families.
Building Relationships: “We want to meet the clients where they are,” Valdez says. He recalls in one instance, when an older couple on the Kenai Peninsula wanted to include three adult children in legacy planning, his team actually flew to visit them on a little Cessna airplane. After facilitating a difficult conversation, they spent the day at the house by the river and went out fishing with the clients. Much of Valdez’ team is Anchorage-raised and the firm leans into scholarships, internships, and university outreach to reverse Alaska’s “brain drain,” where many talented residents seek employment out of state. “A client doesn’t need to go to Seattle, New York, Dallas, wherever, to get the best of the best of financial planning and investment management,” says Valdez. “We do it all here locally.”
Investment Strategy: Portfolios follow a disciplined core equity strategy that primarily uses ETFs, with very few mutual funds. For suitable clients, the team adds alternatives: The firm has historically been using a lot of private equity in recent years, but has more recently begun integrating private credit. Tactical moves complement the core strategy: “We will tilt the portfolio where we see opportunities,” says Valdez. “Earlier in the year, based on macroeconomic views, we tilted into gold then later moved off of it.”
Market Outlook: Valdez borrows a term from his firm’s CIO: “We envision that the market could be violently flat.” The team expected the most recent rate cut from the Federal Reserve and predicts there could be additional rate cuts early next year. “We’re optimistic about the future…but we are cautious that there might be news that could shock the market,” says Valdez. “Our winning formula is we don’t let shocks in the market derail our financial plans.”
Best Advice: Inside the firm, the team often talks about “advisor alpha.” According to Valdez: “The true product of advisor alpha is being able to communicate clearly to the client a plan and helping the client stick to that plan.” In a world of constant headlines, “It’s our job to mitigate that noise so clients can feel comfortable with their plan.”
Off the Clock: Each summer the team heads to the Kenai River for a day of salmon fishing, grilling and camping—often with spouses and parents. The firm also runs a university scholarship and multiple internships: “Being a quality employer and being able to win those types of team members back to Alaska is a huge win for us and for the community,” says Valdez.
Read the full article here