Cardiff Park Advisors LLC

Item 7: Types of Clients
Our clients value clarity, discipline, and a long-term perspective. We advise
high-net-worth individuals, multigenerational families, trusts, estates,
retirement plans, charitable organizations, and private entities. Our clients
typically have portfolios of $3 million or more. Most are U.S. citizens, though
we also serve foreign nationals and expatriates, coordinating as needed with
international custodians and outside advisors.

Item 8: Investment Strategies, Methods of
Analysis, and Risk of Loss
Investment Strategy
At Cardiff Park, we believe capital markets work. Prices reflect available
information, and while short-term movements are unpredictable, disciplined

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Cardiff Park Advisors, LLC            Form ADV Part 2A                  SEC File
Number
CRD Number 126752                                                      801-66660

investors are rewarded over time. Our strategy emphasizes diversification,
consistency, and patience—as opposed to speculation.
We avoid tactics like market timing and individual stock selection. Instead,
we focus on persistent drivers of long-term returns, including broad market
exposure and well-documented factors such as company size, relative value,
and profitability. This approach is grounded in academic research and honed
through decades of practical application.
Our objective is simple: to help clients build resilient, cost-effective portfolios
that can navigate uncertainty and deliver meaningful long-term outcomes.
Portfolio Design and Implementation
We build portfolios from the ground up, beginning with a strategic allocation
between equities and fixed income that reflects each client’s objectives, cash
flow needs, time horizon, and risk capacity. Our goal is to design resilient,
tax-aware portfolios that remain effective across changing market
conditions.
We start with broad market exposure through low-cost index tracking funds
from providers like Vanguard, Schwab, and Fidelity. These vehicles offer
efficient, diversified access to global capital markets. From there, we further
diversify across well-documented sources of expected return—company size,
relative price, and profitability—using structured strategies from Dimensional
Fund Advisors (Dimensional) and Avantis Investors. Each component plays a
distinct role in the portfolio, contributing to a cohesive, evidence-based
investment framework.
For fixed income, we combine bond funds and ETFs with individual securities
when appropriate. These may include U.S. Treasuries, municipal bonds,
agency notes, investment-grade corporate bonds, FDIC-insured CDs, and
inflation-protected instruments. Fixed income design is tailored to tax
considerations, liquidity needs, and the client’s preference for direct holdings
versus pooled exposure.
Tax Efficiency and Rebalancing
Tax awareness is integral to our investment approach. We coordinate
portfolios across taxable and tax-deferred accounts, strategically placing
assets to improve after-tax returns and support efficient rebalancing. Our
rebalancing process is disciplined, opportunistic, and cost-conscious,
designed to manage drift, harvest losses, and preserve long-term tax
advantages without unnecessary churn.

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Cardiff Park Advisors, LLC           Form ADV Part 2A                 SEC File
Number
CRD Number 126752                                                    801-66660

Alternative Investments
We may incorporate alternative investments to further diversify client
portfolios. These include publicly traded real estate investment trusts
(REITs), gold, precious metals, commodity-linked ETFs, and crypto-oriented
strategies. We view these assets as complementary—uncorrelated to
traditional stocks and bonds—and potentially valuable in specific portfolio
contexts. Recommendations in this space are made with care and intention,
based on alignment with the client’s long-term objectives and overall asset
allocation.
Separately Managed Accounts
In some cases, clients may wish to engage an unaffiliated investment
manager to oversee a portion of their portfolio. When this occurs, Cardiff
Park facilitates communication to ensure that the manager’s style, discipline,
and cost structure align with the client’s goals. While we cannot be
responsible for performance of unaffiliated accounts, we will monitor
performance and progress to ensure that the strategy complements the
investment framework that we manage for our clients.
Risk Management
Our portfolios are designed to manage uncertainty, not to eliminate it. Our
first layer of diversification spans core sectors: equities, fixed income, cash,
and alternatives. Within each sector, we diversify across geographic
categories, incorporating asset classes with distinct characteristics and roles.
This structure allows us to align capital with intended purpose, liquidity
needs, and time horizon. We select high-quality holdings and seek tax-
efficient implementation. Where appropriate, we incorporate public market
alternatives that can serve as ballast or offer differentiated return potential.
Through this layered construction and ongoing oversight, we help clients
remain invested through periods of volatility while maintaining confidence in
the integrity of the strategy.
Understanding the Risk of Loss
All investments involve risk, including the potential for loss. Periods of
volatility are inevitable. We help clients anticipate and plan for these events
so they can remain focused and invested when it matters most.
While historical evidence supports the outperformance of value stocks, small
caps, and emerging markets over long periods, each may underperform for
years at a time. Bonds can also decline in value during rising interest rate
environments or under credit stress.

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Cardiff Park Advisors, LLC           Form ADV Part 2A                SEC File
Number
CRD Number 126752                                                   801-66660
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