[  A look under the hood.  ]

Our independent analysis often goes against prevailing short-term opinions to better manage risk, return, and costs.


Our primary equity portfolio uses a strategic, opportunistic core-satellite method to combine consistent allocations with a tactical overlay to manage risk. 

The core, or strategic, allocation is designed to capture risk-based returns from equities and take advantage of the tendency for stocks to rise more than fall over time. The core portfolio concentrates on long-term trends that can sustain above-average growth for at least three years. 

The opportunistic satellite allocation brings assets less correlated with traditional stocks and bonds, providing a tactical overlay to help manage risk and take advantage of shorter-term volatility in stock prices.  

Characteristics of Core Equity

  • A major portion of our equity holdings are invested in large and mid-capitalization companies from developed markets combined in a balanced and diversified portfolio.
  • Smaller companies, emerging market securities, alternative equity, and special situations may be used to complement the core portfolio in a non-leveraged, risk-controlled manner.
  • To identify and value securities that meet our criteria, we use a time-tested five-step process based on meticulous fundamental analysis of valuation, earnings prospects, and financial strength, with a focus on high-quality companies that can survive economic and political adversity.
  • We balance active management of individual equity securities with low-cost index funds for broad diversification, risk management, and cost control.
  • Our independent analysis often results in decisions opposite of the prevailing short-term thinking. We take care not to be influenced by Wall Street's opinions, which are often self-serving.
  • Liquid alternative investments extend diversification to real estate, commodities, natural resources, hedged equities, and, where appropriate, currencies.


Read more about our core-satellite approach.