Our Investment Philosophy

Investment Principles

Decades of academic research suggest that most active managers - whether managing mutual funds, separate accounts, or hedge funds - do not outperform the market itself. Although some active managers outperform the market during certain periods, it is impossible to know in advance which managers will beat their relative benchmark indices. Broadly diversified funds that allow you to participate in the market as a whole are generally much less expensive and much more tax-efficient than traditional actively managed funds.

A better investment experience can be found by designing investment strategies that seek to capture the market's returns, while also seeking to avoid risks where no additional returns are expected. This involves tilting the weightings of the portfolio towards securities that have the characteristics identified in academic research that may produce higher expected returns over time.

Portfolio construction is guided by the firm's underlying investment philosophy comprised of ten core principles: