Philosophy

Investors today are given an incredible array of choices about how to invest their money. This firm was created to help those frustrated with the constant barrage of confusing and conflicting investment information, hit-and-miss approaches and exaggerated return claims.

The truth is, everyone can win because our economy operates under the economic miracle of a free capital market system. When done right, you too can achieve investing success.

Our approach to investing is the application of Modern Portfolio Theory (MPT). MPT, pioneered in the early 1950s by Harry Markowitz, is a scientific system for building the optimal or “efficient” investment. His research earned him the Nobel Prize award for Economic Science in 1990. It has been tested and refined for years by top economic professors, including Eugene Fama and Kenneth French.

MPT centers on the idea of combining asset classes that historically move diversely of one another. Each investment asset class (e.g., growth, small cap) has a certain risk/return character of its own, but also a unique relationship with the other asset classes. For example, research indicates that U.S. and foreign markets often move in different directions. The same could also be said for large and small stocks in the U.S. When seemingly adverse asset classes are combined in an investment portfolio, their individual risk characteristics tend to smooth out the overall risk.

Research has long shown that asset class investing continually outperforms other methods and minimizes risk. Asset-class mutual funds, because their performance matches that of the market segment or index they represent, lead to lower portfolio turnover, which results in lower costs, fewer tax consequences and, in turn, enhanced returns and lower risk.

Institutional investors have used asset-class mutual funds and Modern Portfolio Theory for some time, knowing it’s the best way to protect the investments placed in their trust. We offer this method to all and by doing so, put an end to the myths and mysteries of financial investing.