Our unique approach to investing incorporates findings from academic and Nobel-prize winning research. It is sophisticated, yet straightforward. For the reason that our approach to investing is in sharp contrast to the traditional practices seen in today’s financial services industry, we believe that successful investment management starts with a clear understanding.
We value evidence over emotion.
Behavioral psychologists have identified various behaviors that cause investors to act in sometimes irrational ways. The most important determinant of realized returns comes from the ability to adhere to your carefully constructed investment plan. Keeping emotional responses to a minimum plays a key role in the investment process.
Modern Portfolio Theory
We value decades of academic research over and above the empty, often wildly fluctuating opinions that dominate the financial news.
The basis for the principles in your investment plan is a collection of the best evidence from the academic disciplines of economics and finance. Investment experts usually summarize this evidence as Modern Portfolio Theory (MPT).
MPT has four basic concepts:
Our approach provides for a prudent, fully diversified, cost conscious, performance measured methodology. The American Law Institute, in drafting the Uniform Prudent Investor Rule (which has been adopted by most states as the foundation for their prudent investor rules), stated the following: