I believe that our investment methodology must be rooted in solid academic research conducted by the best and the brightest researchers and investors. We are incredibly proud of the portfolios we manage on behalf of our clients. Our job is to build goal oriented portfolios with an emphasis on historical context, situational awareness and common sense. We prize evidence over excitement and durability over everything as we look to withstand a wide range of market environments. The main focus of our client’s investment plans center on portfolio construction and risk management, while always keeping in mind costs and tax efficiency. The following belief system guides every step, every interaction and every decision we make on your behalf:

Invest Based on Facts, Not Emotions

While your feelings about money play a prominent role in determining the strategy that is right for you, we don’t think anyone’s emotions–including our own–should have a role in making everyday decisions about your investments. Everything we do in your portfolio is based on using decades of academic research to identify an optimal mix of assets and make investment shifts accordingly. We believe Relying on science, rather than emotions and predictions is the best way to serve our clients.

Diversification is Key

Comprehensive, global asset allocation neutralizes the risks specific to individual securities. Diversification is the most effective response to uncertainty. Broad diversification among areas of the markets provides the most proven means of lowering the variability of short-term performance, preserving capital during difficult periods and generating attractive returns over the long-term.

Asset Allocation & Planning Determine Success

Academic research concludes that investment returns are determined principally by an investors mix of assets (stocks, bonds, cash) and not by whether an individual fund or stock beats the market. We focus on highly personalized planning to help meet our clients individual and unique needs. Long-term thinking, not short-term timing.

Risk & Return are Related

The compensation for taking on increased levels of risk is the potential to earn greater returns. Controlling risk is KEY!

Portfolio Structure Explains Performance

The asset classes that comprise a portfolio and the risk levels of those asset classes are responsible for most of the variability of portfolio returns.

A Long Term Approach is Important

Because it reduces risk and increases the likelihood of success, we encourage our clients to adopt a long-term view of investing. Returns can vary widely in the short run, even with investments that have traditionally been considered conservative and secure. Owning investments for a longer period of time, especially five years or more, reduces the impact of year-to-year fluctuations. Long-term investing creates a smoother investment journey, making your financial road easier and more secure.

Controlling Risk is Key

Over the years, we have found that unexpected risk is the number one reason investors abandon their strategies and fail to achieve their goals. That is why so much of what we do focuses on reducing risk in your portfolio. There is another reason, too. Lowering risk can, in fact, increase your returns. Reducing the up-and-down movements in the value of your investments creates more stable returns. Typically, this produces better results than investment programs whose returns are more erratic.

Markets Work

Capital markets do a good job of fairly pricing all available information and investor expectations about publicly traded securities. Basing decisions on market predictions has a low probability of success.

Taxes & Costs Matter

Controlling costs (taxes and trading expenses) is a crucial aspect of maximizing returns. We utilize low expense funds that are highly tax efficient. Let the markets work for you, not against you. Research and practical experience provide clear evidence: efforts to “beat the market” are overwhelmingly negative. In any asset class, the only consistently superior performer is the market itself. Market tracking index and passive funds form the foundation of our approach.

The Most Important Building Block is the Choice of Assets

Portfolios are only as strong as the investments they contain. We favor using globally diversified portfolios of mutual funds and a few specialized investments/securities to help our clients achieve financial success. We owe allegiance only to our clients, and that independence allows us to choose what we regard as the highest quality investments available for your portfolio.

Behavior Matters

Fear, greed and emotions are obstacles to good investment decisions. The key to real-life, long-term results is investor behavior. Most investors constantly change directions and lose the long-term rewards of the capital markets. Maintaining discipline that a sound long-term plan is not abandoned due to the emotions of the day.