Staying True to Our Beliefs
Our Investment Philosophy
We use an evidence-based approach to Investment Management that avoids the common pitfalls of traditional investment approaches. We manage investment portfolios based on the following principles:
- Markets are efficient – over time stock markets have provided excellent returns to long term investors.
- Asset allocation is the most important risk management decision – The appropriate allocation of funds among the major asset classes of stocks, bonds and cash will have a far greater impact on the variability of the portfolio than will the specific selection of any particular security within the portfolio.
- Diversification is the investor’s only “free lunch” – it provides the opportunity for higher returns with lower volatility (risk). Most investor portfolios comprised of individual stocks and bonds tend to be under-diversified and overly risky.