Our Investment Pillars
Belief in Market Inefficiency
We abide by the belief that markets are inherently inefficient. We reject the orthodox principles of rationality and the normality of risk, proposed by CAPM. Instead we favor the heterodox principles of irrationality and the multifractal nature of risk, proposed by behavioral finance.
Consistently Maximize Alpha
We strive to design strategies that capture the risk premiums distinct to a particular investment style. Portfolios are built to exploit the desired style's associated risk premiums to the fullest extent, resulting in a strong active view.
Clear Client Communication
We employ multiple channels of client communication to make sure that clients can reach us with any questions and/or concerns they may have about the market or their portfolio. According to numerous studies the average investor's own emotional behavior is the greatest detriment to their portfolio returns. We seek to mitigate the negative effects of a client's behavior by offering proactive guidance and market commentary.
Adherence to a Disciplined, Systematic Process
We believe the best way to exploit market inefficiencies is through the implementation of a rules based investment process. We have found that a disciplined and evidence driven investment process is vital to consistent superior risk adjusted returns.
We design our portfolios to minimize losses and draw downs in market downturns and bear markets. We employ dynamic asset allocation techniques to mitigate the effects of market volatility.
We believe our clients have a right to understanding our investment approach. We work to educate investors on our investment principles and portfolio construction process.