Conventional Active Management is Flawed

The data shows that conventional active managers – those who try to pick winning stocks/funds in advance – consistently fall short. Due to a combination of high fees, a short-term focus and lack of confidence in their best ideas, more than 4 in 5 professional active managers failed to beat their benchmark over the past 15 years. When you add in the impact of taxes, we believe it is extremely difficult for individual investors to outperform indexes with conventional active management.

Source: US Scorecard, SPIVA Statistics & Reports. All Domestic Funds compared to S&P Composite 1500. Investment Grade Intermediate Bond Funds compared to Barclays US Government/Credit Intermediate Index. Data as of December 31, 2018. Past performance is no guarantee of future results.

we believe in a systematic approach to investing

We believe in a systematic, data driven approach to investing, embracing the best of both indexing (low-cost, rules based) and active management (potential to outperform). Our goal is to diversify away any unnecessary risk and customize your portfolio to your desired risk preference.

taxes matter

Prudent investment management considers the impact of taxes on your investment portfolio. We have the ability to report after tax returns, while most of the industry still does not. Direct investing (individual stocks) affords us the opportunity to harvest losses, as frequent as daily, yet still participate in the long-term growth of the stock market. This helps reduce capital gains outside your portfolio. Paying less taxes provides more money to invest in the future. In our experience, most advisors only harvest losses at the fund level (ETF or Mutual Funds) once a year.

customized approach

Direct investing with individual stocks helps us deliver a customized portfolio for each client, with tax management benefits that ETF’s and mutual funds simply cannot deliver. Whether it is a concentrated position, a legacy portfolio with unrealized gains (stocks or funds), or E.S.G. exclusions, we have the ability to provide each client with a customized portfolio.