• Our Philosophy

    close-up of 888 Boylston Street Boston

What We Believe

Building a portfolio of attractive independent investments, with a focus on avoiding permanent loss of capital and limiting extreme downside volatility, is the key to generating high after-tax compounding of wealth through all economic environments: recovery, reflation, overheating, and recession.

We established the following principles to uphold our investment philosophy.

1. Pursue high-opportunity, independent investments that have a rich margin of safety:

We focus on seeking out high-opportunity investments with a rich margin of safety that are independent of one another. Our goal is to construct portfolios with higher expected returns and better downside protection over the investment horizon.

2. Target low-cost, tax-efficient passive strategies in the most competitive areas of the markets:

We utilize low-cost, liquid, and passive strategies—index, enhanced index, tax-managed, and ‘smart beta’—in areas of the capital markets where active management has shown difficulties in producing excess returns.

3. Partner with highly skilled active managers pursuing specialized strategies in less efficient markets:

We invest with elite global investment managers pursuing a variety of independent strategies and seeking to exploit market inefficiencies and dislocations in their area of specialization. We capitalize on their expertise across the portfolio to assemble an optimal mix of strategies and managers.

4. Build holistic portfolios and rigorously monitor positions, assumptions, and opportunities:

A holistic approach ensures proper balance amongst a complementary mix of investments. Once established, maintaining optimal portfolios requires rigorous monitoring. It also requires a strong analytical capability to capture, model, and interpret portfolio exposures, risks, and performance.