We specialize in selecting tactical investments in asset classes, countries, currencies, sectors, industries, bond segments, and investment factors (such as small vs large, growth vs value, etc.). We usually get the desired exposures through ETFs and closed-end funds, which diversify away security-specific risk. For clients with large taxable portfolios of individual stocks, we get the tactical factor tilts we prefer through stocks, carefully balancing tax costs with risk-control and return-enhancement.
Even though many of our investments are in various kinds of index funds, we do not hug the usual capitalization-weighted stock and bond benchmarks. We take calculated and carefully researched risks, seeking to harvest sources of return other than simple core stock and bond returns.
We base our investment decisions on hard evidence, not subjective guessing. Tactical decisions are formed using a combination of momentum, value and quality considerations. The market inefficiencies that we exploit are validated by respected academic research, thoroughly scrubbed data and constantly updated empirical results.