Academic Investment Principles

   We firmly believe that everyone has a wealth potential that is greater than they are on track to achieve.

   We also believe there are forces in the economy that are at work to keep it that way.... forces that actually prevent people from achieving that potential.

   Financial institutions and the media (financed by commercials and advertising revenue) are two of the main culprits.  They can use that power to influence you emotionally.  An emotional decision is normally a regretable but not forgetable decision.

   We exist to help our clients overcome those obstacles.  The wealth is being created; it is just going to the wrong pockets.  If we can create wealth simply by repositioning assets and/or reducing risk, we are transferring wealth back to you.

   We use a sound investment philosophy comprised of three main components. 

   The first component is based on a Dr. Eugene Fama's efficient market hypothesis, which asserts that our free markets are very efficient, and pricing of assets are almost instantaneous when new and currently unknown events or facts become public knowledge.  As we believe this, we don't believe any person can successfully predict stock prices or time the market. 

   The second component is also based on a Nobel Prize winning theory called Modern Portfolio Theory.  Studies conducted in the process of developing this theory showed that almost 92% of all portfolio returns came from asset allocation.  Only 8% comes from choosing the right stock or timing the market.  Consequently, we manage risk by developing your asset allocation model and constantly rebalance as necessary.

   The last component is critical and often overlooked.  It uses market, style, and size factors to include non-correlated assets in your design.  These are used to reduce your overall risk and increase your returns.

   We will provide you with a written investment policy statement.  You will be able to plot your risk on the efficient frontier.  .