Investment Philosophy
WELLthPro’s investment process and philosophy combines the best of Nobel Prize-winning and academic research with our own award-winning algorithms and methodologies. To learn more, read below.
Our Core Beliefs
Investing Requires Empiricism
A successful investment process requires statistical rigor. We utilize a combination of the best of academic literature and our own research to deliver an evidence-based investment experience.
Risk Management is Critical
Famed investor Benjamin Graham once said “The essence of investment management is the management of risks, not the management of returns.” We agree, and focus on creating efficient portfolios in which uncompensated investment risk is minimized.
Fees Matter. . . A Lot
Advisory, management, and internal fund fees place a considerable drag on long-term investment performance. We seek to create cost-efficient strategies that minimize both explicit (ticket charges, expense ratios) and implicit costs (taxes, liquidity costs).
The Four Pillars of WELLthPro's Investment Process
WELLthPro employs a four-pronged investment process, designed to optimize portfolios at all levels and timeframes.
A Top-Down Methodology
Our process is a “top-down” methodology, meaning that we begin our strategy development by asking big questions such as:
- What is our client’s return objective and risk tolerance?
- Which asset classes and sub-asset classes have the best risk/return characteristics (e.g. stocks vs. bonds or domestic versus international stocks)
We utilize forward looking returns and portfolio optimization to answer these questions and develop the optimal asset allocations for our strategies.
Once the asset allocation is complete, we pivot to security selection. We utilize a factor-based stock selection strategy. Also called “enhanced indexing,” factor investing seeks stocks which display characteristics which academic literature has associated with either increased returns or lower risk versus a traditional indexing strategy. Factor investing places an emphasis on objectivity and low fees to maximize investor returns.
Finally, we earmark just a portion of a given portfolio for tactical risk management strategies. Our award-winning algorithms seek to identify periods of more and less favorable risk/reward regimes in markets and may temporarily, and slightly position portfolios more or less aggressively to deliver improved portfolio results.
We invite you to use the links above to dive into each facet of our investment process. Or, if you would like to discuss with Chris one-on-one, you can schedule a complimentary consultation here.