Financial markets are efficient but human nature isn't.
We believe in a long term, disciplined investment approach that is grounded in market efficiency and an understanding of human nature. Emotions and biases often lead to irrational decision making, which can result in considerable underperformance relative to the market. If we can help people understand how markets work, then they will be in a better position to deal with uncertainty. Our broadly diversified portfolios seek to capture the power of markets while mitigating risk. We provide professional guidance to help take the emotion out of investing and be a calming voice in uncertain times. |
Markets Have Rewarded Long-Term Investors
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Factor Investing: taking risk where we expect to be compensated for it.
What is the optimal way to take and be compensated for risk? We believe that evidence, not speculation, should drive investment decisions. Decades of research have demonstrated how a majority of investment returns can be explained by the way a portfolio is built. Many would have you believe that an ability to pick a hot stock or time the market is the reason by which investment returns are generated. The fact is the vast majority of evidence is not on the side of speculation. There is a smarter way to take risks that give investors the best chance of increasing returns. Factors such as the size, price, momentum and quality have demonstrated areas where excess return can be achieved over the market index. These factors must have strong empirical evidence, strong economic intuition backing them, and must be highly pervasive across time, geography and asset classes. We strive to be a market leader in factor-based investing by translating academic research into sophisticated portfolios. |
Advanced portfolios with exposure to areas that have historically driven returns.
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Diversification is essential.
Arguably the most important thing an investor can do to reduce risk is to diversify. Owning a variety of investments, that don't move in similar ways, during different market conditions, is one of the oldest and most well respected principles of investing. Some might suggest that a portfolio need only have exposure to a few factors, companies, sectors, or asset classes for proper diversification. We believe in building some of the most diversified portfolios in the world with exposure to approx. 12,000 companies, and 12 unique asset classes in over 50 countries.
Arguably the most important thing an investor can do to reduce risk is to diversify. Owning a variety of investments, that don't move in similar ways, during different market conditions, is one of the oldest and most well respected principles of investing. Some might suggest that a portfolio need only have exposure to a few factors, companies, sectors, or asset classes for proper diversification. We believe in building some of the most diversified portfolios in the world with exposure to approx. 12,000 companies, and 12 unique asset classes in over 50 countries.
Research needs real world application.
We focus on bringing the great ideas in finance to life for our clients. It’s one thing to develop hypothetical portfolios; it is another to make them a reality. We are dedicated to ongoing research and its application to the real world. Long term academic evidence drives the evolution of our investment strategies. The research we put our faith in is subject to rigorous peer review. It's published, critiqued, and scrutinized by the world. WealthShape carefully combines multiple investment providers including Dimensional Fund Advisors (DFA), Applied Quantitative Research (AQR), Vanguard and other quantitatively based solutions to access the diversification and factors we seek while prudently managing costs and taxes in the process.
We focus on bringing the great ideas in finance to life for our clients. It’s one thing to develop hypothetical portfolios; it is another to make them a reality. We are dedicated to ongoing research and its application to the real world. Long term academic evidence drives the evolution of our investment strategies. The research we put our faith in is subject to rigorous peer review. It's published, critiqued, and scrutinized by the world. WealthShape carefully combines multiple investment providers including Dimensional Fund Advisors (DFA), Applied Quantitative Research (AQR), Vanguard and other quantitatively based solutions to access the diversification and factors we seek while prudently managing costs and taxes in the process.
Investment Evolution Based on Evidence
Our goal is to amplify wealth by the most logical means available.
WealthShape filters the investment universe to select funds that we believe give investors the best chance to benefit from over 90 years of academic and Nobel Prize winning research.
WealthShape filters the investment universe to select funds that we believe give investors the best chance to benefit from over 90 years of academic and Nobel Prize winning research.