Utilizing evidence-based investment principles is the
corner stone of our value proposition to our clients.
Three-Factor Model

Finance academics Eugene Fama Sr. and Ken French were professors at the University of Chicago – Booth School of Business when they developed their seminal theory about what determines stock portfolio returns. When these prominent academics analyzed the return of various asset classes in North America over an extended period of time, they discovered that over 90% of an investment portfolio’s return can be explained by the following three factors:

Three-Factor Model

We construct our clients’ portfolios with the Three-Factor Model in mind, while taking into account that managing our clients’ emotional reaction to various market events is just as important, or perhaps even more so, than how their portfolio is structured. When creating our clients' investment portfolios, we do not recommend and sell individual stocks. Instead, our portfolios consist of carefully selected mutual funds that are either managed by a portfolio manager or unmanaged like an index fund.

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