Factor Based Investing

Our Factor based portfolios use the Nobel Price wining research of Eugene Fama. Portfolios are structured based on academic research rather than speculation or commercial indexes.The Portfolio’s use focused strategies on the dimensions of higher expected returns and seek to add value through portfolio design and implementation.Factor Tilts applied to equities include Value, Small Cap and to a lesser extent Quality and Momentum. Fixed Income Funds exclude Junk Bonds and are focused predominately on US and Foreign Investment Grade Securities. Dynamic bond allocation funds are typically included that adjust for credit and term risk depending on credit spreads and the yield curve.

Portfolios are based on individual investor risk tolerances and an evaluation of market conditions, with an eye on the business cycle. Portfolio’s range from 100% fixed income to 100% equity and are highly diversified.Foreign Bonds typically are hedged to US dollars whereas currency risk is taken in foreign stock portfolios. There is typically a US equity bias which can be modified to favor a higher foreign exposure.

Portfolios are typically structured using Institutional Quality Mutual Funds such as Dimensional Funds, an over $400-billion-dollar Mutual Fund Company and Vanguard Mutual Funds.Portfolio’s will typically consist of Equities, Bonds and/or REITS.

We offer these portfolios in a Tax Advantaged structure for Taxable Accounts and a different mix for Qualified accounts such as IRA’s and 401 K plans.We also have smaller portfolios designed for accounts with balances under $300,000 on a standalone basis or as a component when a group of accounts exist (i.e. where say an Investor or family has multiple IRA’s, 401K and taxable account, etc.). These portfolios are rebalanced on a periodic basis.