107 – The Family Stewardship Approach to Investing (part 1)
We have discussed the importance of formulating an investment strategy that is informed by financial science. But a solid market philosophy and strong research are not enough. Good ideas are not enough. An investment manager must put those ideas to work each day in a competitive market. This requires an approach that dynamically integrates the research with portfolio structure and implementation. This is where science meets investing. We apply a different investment approach. It is informed by financial science and the view that market prices reflect all available information. We also believe that different securities can have different expected returns. Guided by this perspective, this approach looks to academic research to gain insight into the dimensions that drive those expected returns, then integrates this knowledge into strategies designed and implemented to add value in competitive markets.