With over 160 years of investing experience, we have a unique vantage point on the markets – one that defies conventional thinking.
The current trend – what is known as Modern Investment Theory – asserts the market is efficient. That is to say stocks are always perfectly priced, and you cannot find or buy any at a discounted value. There’s just one catch: This efficiency model is based on the presumption all players behave in a rational manner.
If only it were so.
Instead, investors tend to act irrationally in times of market volatility. (Notably, equity market selloffs in 2001 and ’02 and in 2008 catalyzed by the tech and real estate bubble, respectively.) Emotion clouds sound judgment and causes one to fall prey to prevailing consensus opinion, rocking the market and rendering it inefficient.
That’s where we come in
Because of our disciplined approach and agility, we respond to rather than react to market volatility. We are able to engage when others retreat, ferreting out undervalued and overlooked securities. In this way, we exploit market inefficiencies, thus maximizing client returns, managing downside risk and providing solid outcomes.
A divergent approach to diversifying
Some see portfolio diversity as a shield from volatility. Diversification for its own sake, however, can limit long-term growth and prove inefficient in times of market stress. Instead, we see diversification primarily as a means for achieving higher returns, which our metrics and experience has borne out as true over the years.
It’s another example of our independent – and forward – thinking.