Our Investment Approach

We utilize a “Core/Satellite” investment strategy in which the core is a traditional long-term “buy-and-hold” portfolio and the satellites are factor-based strategies, providing diversification and the potential for higher returns and/or downside protection.

Value, quality, and momentum are the factors we rely most heavily on.  With value strategies, the focus is on companies currently priced at a discount to similar companies.  The thought is that purchasing securities at lower prices will lead to higher returns.  Quality strategies seek companies with higher profits and margins than its competitors, often due to some competitive advantage. 

Momentum is perhaps the most under-appreciated and under-utilized factor.  It’s a system of investing in which decisions to buy or sell securities are based on recent returns.  There are two types of momentum investing – relative (or cross-sectional) and absolute (or time-series).  Relative momentum investors compare securities to each other, while absolute momentum involves comparing a security to its own historical performance.  Our strategy combines both absolute and relative momentum in an effort to capture both excess returns and downside protection.