Why Invest?
Focus on investing, not the benchmark
Just because a security or sector is in a benchmark doesn’t mean it’s a good investment. In fact, the broadly efficient nature of markets implies that most of what’s in the benchmark is rationally priced. So, we make investments without thinking too much about the benchmark’s constituency and instead focus on valuation and risk-reward drivers from a bottom-up, fundamental level at a low fee with daily liquidity for a diversified passive portfolio.
Invest for long-term results
Our long-term approach is ingrained in our culture and investment process. Our culture supports long-term, rational decision making. When analyzing companies, we think carefully about what management teams are doing with their shareholders’ capital. We sift through market data to determine what will help us differentiate between secular and cyclical change. We remain patient through short-term swings and often do what the crowd is not.
Employ unconventional thinking
We systematically pursue new and better ways of understanding how people, businesses and markets behave to enhance and challenge our thinking. As complex, adaptive systems, markets constantly provide us with new information, which we use as a starting point for inquiry. Nontraditional sources, including academic and literary journals, play an important role in our process. We are particularly involved in both the Santa Fe Institute and the London Mathematical Laboratory.
