finding simplicity in complexity

In a world riddled with opaque, risky, and expensive investment products, our process identifies simplicity in the complexity of capital markets. With thousands of stocks to pick from, and even more mutual funds and exchange-traded funds available, where does one begin? We begin with our belief in the elegance of capital markets. While many advisors fight markets, we look to harness its power.

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a renaissance in portfolio design...

The evolution in our understanding of how markets function has led to a renaissance in portfolio design. This renaissance known as modern finance has created an enlightened approach to investing – we now know that the structure of a portfolio determines the vast majority of its performance. With this leap forward, we can look to specific dimensions of the market to engineer “tilted” portfolios that systematically pursue return premiums. This method of factor-based investing allows us to design targeted strategies aimed to match our investors' life goals better. The chart below illustrates how these market dimensions have historically rewarded investors over time.
Historically Investors Realize Big Gains from Capital Markets
Growth of USD 1, January 1927 - December 2016
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a renaissance in portfolio design...

The evolution in our understanding of how markets function has led to a renaissance in portfolio design. This renaissance known as modern finance has created an enlightened approach to investing – we now know that the structure of a portfolio determines the vast majority of its performance. With this leap forward, we can look to specific dimensions of the market to engineer “tilted” portfolios that pursue return premiums in a systematic fashion. This method of factor-based investing allows us to design targeted strategies aimed to match our investors' life goals better. The chart below illustrates how these market dimensions have rewarded investors over time.
Long-Term Investors Realize Big Benefits from Capital Markets
Growth of $1 USD, January 1927 - December 2016
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Many want to “beat the market,” how they go about it makes a difference. Investing can allow our clients to pursue higher expected returns, prudently. Speculating can be fun and exciting, but it often leads to poor results. Decades of research show us that many traditional managers have historically underperformed even a simple index benchmark. While plenty of research papers in the journal of finance document this failure, you don’t have to look any further than the semi-annual scorecard published by the Standard & Poors.

October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February.
- Mark Twain
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Traditional managers can underperform!
Percent of traditional managers who are meeting their benchmarks over 15-year period as of June 30, 2017. Data provided by the Standard & Poors.
Small Cap Managers
Mid Cap Managers
Large Cap Managers