Core Market Beliefs
Market efficiency: This term means that information used to price stocks spreads very quickly. The implication is that at any time the price of a stock has incorporated all publicly available information. Most academic literature supports this assumption and it's conclusions.
Less is more: Given what we know about market efficiency, we believe it's best to focus on reducing "friction" in client portfolios in the form of fees. The less fees in your portfolio, the more return for you. it's YOUR money and YOUR future.
Diversification
We diversify our clients' portfolios across asset class (stocks, bonds, real estate), geography (foreign, domestic), and market capitalization (small companies and large companies).
We tilt our clients' portfolios towards small "value" stocks i.e. stocks that we believe can be purchased at a discount.
Financial Instruments
We implement client portfolios using exchange-traded funds (ETFs). We believe ETFs provide superior efficiency in the form of lower fees charged to the client.
For a more technical information about our investment philosophy, click here.