For any structure or endeavor to stand the test of time, a robust foundation is required. In our investment work for clients, that foundation is the ongoing work of the academic community.
The field of financial science has advanced steadily since the early 1950’s. In each decade since, groundbreaking research into how capital markets work, asset pricing, portfolio structure, sources of expected return and many other areas have broadened and deepened our understanding of what increases the probability of successful investor outcomes.
Applying this body of knowledge to investing is a radical departure from the traditional approach promoted by Wall Street’s marketing machine. That model is market-driven and based on what will sell at any point in time; it plays on investors’ fear and greed.
The academic foundation considers what objective, high-quality research has revealed over the past 60 years and applies evidence-based methodology to inform decisions about which approaches are more likely to succeed and which are more likely to fail.
While financial science continues to advance and knowledge is continually refined, the foundation remains solid. That brings tremendous peace of mind that what’s been built is truly built to last.