Core Belief |
Implications |
Asset Allocation is the primary driver of returns |
We implement through a mix of actively managed funds and ETFs |
Lower volatility leads to more predicatable returns |
We perform intensiver research into the volatility and correlation of funds,
indexes and ETFs |
Efficient market hypothesis is sometime wrong |
We use a core and satelite approch to address opportunities. We may
under / overweight or hedge sectors and classes |
Diversification improves returns over the full-cyle of good
and bad markets |
We maintain allocation to areas that "cost" ST performance so that they "add" LT
performance as market leadership rotates |
Rebalancing reduces risk and improves returns |
We rebalance semi-annually or as macro-events make prudent |