LONG TERM INVESTING, DISCIPLINED ASSET ALLOCATION, DIVERSIFICATION, AND TAX & COST EFFICIENCY

 

  • We design & execute efficient mean variance portfolios drawn from more than 20 asset classes and execute via low cost, tax efficient indexed product.
  • We believe asset allocation drives the preponderance of risk & return of portfolios. It is the most important investment decision for our clients.
  • We also believe markets tend towards efficiency over time and that costs and taxes, explicit and hidden, count hugely in investor returns.
  • As a general rule we do not select securities of individual companies nor do we time markets.
  • We are skeptical of the efficiency of active management.
  • We doubt that sustainable, cost & risk effective ‘alpha’ exists in most traditional sectors. And if it exists at all, it is likely to be found in the alternative sectors where it is unclear that the risks of active investing are properly understood & quantifiable in any reasonable manner.
  • We believe that most tools for risk assessment are imperfect, and that volatility and long tailed risk are far more difficult to estimate & forecast than is currently believed.
  • While our computational and analytic technologies are state of the art, we recognize that technology is a tool with limitations and judgment remains an important tempering element.
  • We believe the financial services industry as practiced today has largely come to be in direct conflict with the interests of its clients. All too often the interests of clients are routinely subordinated to the revenue preferences of the broker/dealer or its affiliated 'advisor'.  We will have no part of that model.
  • We adhere to a fiduciary standard and act in the best interests of our clients. We operate on a fee only basis and have no economic interest in any client transaction or brand of financial product.