How We Invest
Portfolios are diversified using alternatives such as commodities, real estate investment trusts, and hedge fund strategies. In some cases, specific securities are selected (such as dividend stocks). Market sectors might be over- or underweighted to better match the pre-existing risk profile of the client. Portfolios are tactically rebalanced at the margins based upon various economic factors, such as those discussed in Antti Ilmanen’s Expected Returns.

Finally, fixed income investments are added to dampen portfolio volatility to the desired level.

No investment strategy is always in favor. Our clients are long-term investors who seek to harvest the returns accruing to these academically-based approaches over the market cycles. They are encouraged to stay the course during the inevitable periods of underperformance, the better to avoid the fate of investors who become impatient during such times.

Our investment philosophy is described in our bestselling books (mostly co-authored with Ben Stein). We are proud that our writings have received endorsements from such luminaries as Milton Friedman, John Bogle, Cliff Asness, Robert Arnott, Andrew Lo, William Bernstein, Jonathan Clements, and Jim Rogers.

Most clients come to us after reading one of our books, because they sense that our outlooks are similar and that we would be a good fit in working together.

For an overview, we recommend The Affluent Investor. Our columns for also may be of interest, according to topic.