Investment Strategy

Investment Strategy

We believe markets “work” and are efficient.

Our Equilibrium-Based investment philosophy is founded on exhaustive academic financial research.  This research has concluded managers are unable to consistently select stocks that will outperform.  In addition, timing the market also produces sub-par results over the long term. Instead, we believe that the most prudent strategy is to capture what the capital markets have to offer through diversification, controlling costs and maximizing tax efficiency.

We see markets as an ally.

Rather than trying to take advantage of the ways markets are mistaken, we help our clients attempt to take advantage of the ways markets behave.  Stated differently, we trust in the power of competitive markets. Companies compete for investment capital, and millions of investors compete with each other to find the most attractive returns.  This competition drives prices to fair value or “equilibrium”. This creates an environment where investors should only expect potentially larger returns if they are willing to bear greater risk.

Unlike the big banks, we are completely transparent, even obsessed, with doing everything we can to eliminate any conflicts of interest.

Essentially, our investment strategy brings logic, transparency and simplicity to your life. We help you focus on the things you can control, so you can ignore the things you can’t.

Our process includes six-steps:

  • understand-your-profile

    Understand Your Profile

    We begin by learning about what kind of investor you are – including your goals, your risk tolerance and your Financial DNA – so we can make sure your portfolio and your financial plan are a perfect fit.
  • choose-the-right-asset

    Choose the Right Asset Mix

    Once we understand your unique profile, we begin by determining the most suitable mix of fixed income, equity, and real estate securities and alternative investments.
  • determine-fixed-income

    Determine Fixed Income Allocation

    We advise on the fixed income side of the portfolio using an appropriate mix of Canadian and global investment-grade bonds of various maturities, with special attention paid to tax efficiency.
  • globally-diversify

    Globally Diversify the Equity Allocation

    We reduce risk by advising on dividing the equity side of the portfolio among Canadian, US and international stocks, real estate securities, and alternative investments.
  • overweight

    Overweight Small Cap and Value Stocks

    For clients who are willing to accept higher volatility, we give extra weight to small cap and value stocks, which have historically outperformed the broad market over the long term.
  • investment-policy-statement

    Create an Investment Policy Statement

    Once we have completed our process, we create a personalized Investment Policy Statement (IPS) that summarizes your objectives and the strategy we will use to meet them.