Our Investment Philosophy

We apply our proven expertise in an integrated, sophisticated manner, so you’ll gain the benefit of methods that sophisticated investors have used for years.

Professor Eugene Fama of The University of Chicago Booth School of Business has been awarded the Nobel Prize in Economics. Professor Fama is widely recognized as the “Father of Modern Finance” because of his groundbreaking work on asset pricing and markets. His contributions have guided our investment philosophy from our founding in 1993.

This philosophy can be broken down to five key foundational concepts:

Leverage Diversification to Reduce Risk.

It’s a fact – we’re all poorly wired for investing. Our emotions are powerful forces that can send us on a roller coaster ride with the market and cause us to do exactly the opposite of what we should – like buying high and selling low.

investment diversification

But truly diversified investors can lower their risk, without necessarily sacrificing return. Because they recognize that it’s impossible to know with certainty which asset classes will perform best in coming years, diversified investors take a balanced approach and stick with it despite volatility in the markets.

Seek Lower Volatility to Reduce Risk.

Let’s consider two mutual funds. Each of them has had an average arithmetic rate of return of 8% over five years, so you would probably expect to have the same ending wealth value. But it is a mathematical fact that the one with less volatility will have a higher compound return.

reduce investment risk

Not only does lower volatility help you ride out the emotional curve, it will also help to create the wealth you need to reach your financial goals.

Use Global Diversification to Enhance Returns and Reduce Risk.

Individual stocks of companies around the world with similar risk have the same expected rate of return. However, they don’t get there in the same manner or at the same time. The price movements between international and U.S. asset classes are often dissimilar, so investing in both can increase your portfolio’s diversification.

Employ Asset Class Investing.

An asset class is a group of investments whose risk factors and expected returns are similar. Asset class investing will enable you to gain the same advantages previously enjoyed only by large institutional investors, including the benefits derived from lower operating expenses; lower turnover resulting in lower costs and lower taxes; and consistently maintained market segments.

efficient portfolio design

Design Efficient Portfolios.

For every level of risk, there is some optimum combination of investments that will give the highest rate of return. The combinations of investments exhibiting this optimal risk/reward trade-off form the “efficient frontier” line. Our job is to make sure that for whatever risk level you choose, you have the highest possible return on the efficient frontier so that we can maximize the probability of achieving your financial goals.


It’s important to understand that while the concepts we employ are designed to maximize return, no strategy can eliminate risk. Our goal is to optimize your portfolio to the risk tolerance you are most comfortable with, adjusting as needed over time to fit your life as that tolerance changes.

Are You Ready to Get Started On Your Path to Independence?

Talk to our team today to learn how »

Go confidently in the direction of your dreams. Live the life you have imagined.

Henry David Thoreau