Our Investment Philosophy

Markets work. Capitalism works. The global markets have a history of rewarding investors for the capital they supply. Companies compete with each other for investment capital and millions of investors compete with each other to find the most attractive returns. This competition quickly drives prices to fair value, ensuring that no investor can expect greater returns without taking greater risk.

Traditional managers strive to beat the market by taking advantage of pricing mistakes and attempting to predict the future. Wealth is neither created nor preserved by merely moving money from stock to stock, rotating through sectors, or jumping around from manager to manager. Capitalism creates wealth over time by connecting investors of capital with corporations that create wealth from that capital. It’s the entrepreneurs, laborers, and managers who together with capital, build companies and help the economy grow.

Most investors are not aware that their chosen approach or the traditional manager’s approach to investing is based on predictions and speculation (market timing, stock picking, and trying to take advantage of pricing “mistakes”). Too often this proves costly and futile. Predictions go awry and managers miss the strong returns that markets provide by holding the wrong securities at the wrong time. It is futile to try and outguess the market of environment of randomly fluctuating stock prices, constantly changing interest rates, geo-political and economic developments, and man-made or natural disasters.