Investment Philosophy

“How can we do bet­ter than the major­ity of active man­agers who have under­per­formed their bench­marks decade after decade?”

Our strat­egy is to empha­size what the major­ity of active man­agers neglect:

  • Avoid seri­ous losses and seek reli­able long-​term gains.
  • Accept the future as uncer­tain and unpre­dictable and pre­pare for a range of future out­comes rather than invest­ing only in the most likely outcome.
  • Align our strat­egy with your multi-​year time hori­zon and with your view of risk as loss of capital.
  • Con­sider future cor­re­la­tions and out­comes rather than naively accept­ing his­tor­i­cal rela­tion­ships between asset classes.

Using sce­nario fore­cast­ing tech­niques, we iden­tify an attrac­tive mix of assets, sec­tors, regions and fac­tors (such as large vs. small, growth vs. income, volatile vs. sta­ble, etc.). Client port­fo­lios are then con­structed by iden­ti­fy­ing high qual­ity indi­vid­ual stocks that are lever­aged to these rel­e­vant macro fac­tors, tak­ing into account client risk pro­files and social policies.

We believe the pri­or­i­ties of our firm are aligned with your needs and goals—to min­i­mize major losses in order to achieve growth over time. Our objec­tive is to avoid sig­nif­i­cant losses in declin­ing mar­kets and to pro­duce rel­a­tively sta­ble pos­i­tive returns, which is quite dif­fer­ent from try­ing to out­per­form an equity benchmark.