Our Smart Beta Strategies Seek to Replicate Market Returns While Making Intelligent Decisions Around Asset Class Valuations


Smart Beta is a form of passive investing that seeks to use intelligent overlays to improve returns over time. The general idea around passive investing is that it is very difficult to beat the market. This is justified by the fact that on average active managers (mutual funds, hedge funds, etc.) tend to under-perform the market by at least the cost of their fees.

Therefore, passive investing seeks to remove any active management (i.e., picking stocks) and simply buys the market or portions of the market (large cap, small cap, etc.). 

Our Smart Beta strategy is to utilize the best ideas of passive investing while also being cognizant of the valuations underlying the various asset classes. Asset classes trading at nose-bleed valuation levels are unlikely to earn a sufficient return over an entire market cycle and therefore deserve a smaller allocation than an asset class trading below historical average valuations.

What is Smart beta INvesting?


Many financial advisers allocate across different asset classes based on some inputs of age and risk tolerance relating to their client. For example they will have large cap equities, small cap equities, international equities, emerging market equities, fixed income, etc.

The part they often miss though is price.

The models tell them to put 10% of the portfolio in emerging market equities and they do so no matter whether emerging markets look undervalued or overvalued based on historical valuations.

Our goal is to overlay our valuation skill-set on passive funds that allow us to make more optimal risk/reward determinations, even within a passive investing strategy

Passive investing may be appropriate but wealth management should never be passive                                                             


Given the more passive nature of our Smart Beta strategies compared to our actively managed portfolios, we lower our fees and our account minimums to accommodate a wider array of clientele.

lower fees and lower minimums