We take an academic and common sense approach when it comes to investing. The principles we follow are sensible, measurable, persistent, pervasive and cost-effective.
Studies have indicated that 94% of investment performance can be traced to the investment’s asset allocation. The most basic example of asset allocation is your ratio of stocks vs. bonds. Asset allocation is the big ‘E’ on the eye chart and should not be done haphazardly. Therefore, we utilize the Nobel Prize-winning research of Modern Portfolio Theory to construct a thoughtfully structured investment plan.
To implement the investment plan, we invest in broadly diversified, low-cost, tax-efficient mutual funds designed to specifically and accurately track each piece of the prescribed asset allocation.
Dimensional Fund Advisors (DFA) assists with this task by providing our clients access to institutional quality funds not available to the general public. Many of the funds contain thousands of companies and are designed to capture the entire market sector instead of a specific slice as dictated by an active Wall St. manager or broker.
Often, our type of investment approach is described as an index- or passive-type investment philosophy. While these terms provide a basic understanding for our style, the scientific and academic research incorporated into our philosophy really takes index or passive investing to the next level. If you’re interested in learning more of the details, please schedule an Intro Meeting.
 Gary P. Brinson, L. Randolph Hood and Gilbert L. Beebower, “Determinants of Portfolio Performance,” Financial Analysts Journal, July/August 1986.
Gary P. Brinson, Brian D. Singer, and Gilbert L. Beebower, Determinants of Portfolio Performance II: An Update, The Financial Analysts Journal, 47, 3 (1991)
Past performance does not guarantee future results. All investments involve risk.