Before detailing the investment process, it is important to outline the investment principles which guide our thinking at ARF and our beliefs about investing.
All of our investment activities operate according to this unifying philosophy.
Superior investment performance is not our primary goal, but rather superior performance with less than commensurate risk. The emphasis at our firm is on consistency and protection and less on one-off high returns.
Between two-thirds and three quarters of money managers fail to beat their benchmark over the long run. As such we recommend both a passive and active approach for a portfolio.
Because we do not believe in the predictive ability required to correctly time markets, we structure portfolio’s with a long term time horizon in mind.
The basis for our philosophy is that investors overact in the short run due to emotional stress or excessive optimism. If investors follow a structured and disciplined approach to investing they will avoid many of the biases which cause them to act in irrational ways. Our job as financial advisors is to guide you through this process.
Economics and finance is a social science, we strive to exploit the best of both within investing.