Our public equity investing strategy is derived from research conducted by an elite group of academics. The 2013 “Nobel Prize” was awarded to Eugene Fama for his contributions, and this is just the latest addition to the awards given to researchers who reject the status quo of Wall Street.
A decades-long effort to document and research the history of stock prices has produced strong evidence that neither indexing nor stock picking will produce the highest risk-adjusted returns. This discredits two common choices given to investors in favor of a newer strategy called “structured asset class” or “factor-based” investing. This low cost and tax efficient approach looks for sources of higher returns across the global stock market and produces portfolios more heavily weighted in smaller company stocks and value stocks.