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Investment Philosophy

What We Believe

We trust the market.

We believe in market efficiency and mean reversion. These two tenets serve as the bedrock to our philosophy.

We believe efficient participation in market returns, proactive risk mitigation (protecting portfolios from large losses), and purposeful rebalancing are the cornerstones to long-term investment success.

We believe that most capital markets are efficient enough over the long run that you cannot consistently achieve higher risk‐adjusted returns than the market itself by selectively investing in the various components of that market.

We believe that you cannot consistently outperform the market nor be distracted by market outliers.

We believe that you are best served when we focus on risk-adjusted returns and develop an asset allocation centered on your specific liquidity needs and risk profile.

We believe by eliminating excessive investment costs and employing a well‐constructed, diversified portfolio, we can capture market returns over time and deliver a higher risk‐adjusted return to you.

Excessive investment costs erode returns over time. Excessive downside risk can destroy portfolio value. We control costs and employ a diversified portfolio for you.

Implementing Our Approach

We believe long-term investment performance is primarily a function of asset class mix. As such, we seek to build investment portfolios utilizing multiple asset classes in order to achieve a diversified investment portfolio that will minimize volatility and maximize return. Some of the typical asset classes that we use are:

Bonds (Fixed Income):

Historically, interest-generating investments, such as bonds, have the advantage of relative stability of principal value, but they provide little opportunity for real long-term capital growth due to their susceptibility to inflation.

Equity Investments (Stocks):

Stocks clearly have a significantly higher expected return, but have the disadvantage of much greater variability of return. From an investment decision-making point of view, this variability may be worth accepting given your long time horizon.

Real Assets:

Investments such as real estate investment trusts (REITs), master limited partnerships (MLPs), precious metals, and commodities have offered investors exposure to certain investments that are either income generating (REITs and MLPs) or perform well under certain economic conditions (i.e. commodities within an inflationary environment).

Diversifying Strategies:

These are strategies which have historically provided exposure to various alternative investments that are not highly correlated to traditional asset classes. This provides investors with diversification benefits that may not be achievable in a traditional stock/bond portfolio.

Focusing on balancing the risks and rewards of each broad asset class, your target allocation is invested in each of these asset classes. Each of these asset classes are unbounded by geographical regions which provides the portfolio with a truly diverse and global target allocation. The target allocation is considered to be the baseline weighting and we may, depending upon economic conditions, over- or underweight the baseline portfolio weightings.