Our investment philosophy is best summed up in the phrase “markets work”. Since markets are efficient, there is no extra reward afforded to investors who take the additional risk of attempting to beat the market. In fact, decades of studies show that few – if any – managers are able to outperform their benchmarks on anything approaching a consistent or repeatable basis. This effectively adds another layer of risk – manager selection risk – to the total risks that an institution faces in its portfolio.
Our goal, on the other hand, is to construct portfolios that capture risk-adjusted, market-based returns without the additional expenses and pitfalls of attempting to outperform a benchmark. At the same time, our process is designed to maximize diversification, preserve liquidity, and minimize costs.