Models 2017-04-14T10:13:07+00:00

Our Models

One of the secrets to our success is our models. Some of the models are theme based (“a thematic model”) and would not be suitable for a core holding in a portfolio, while others are globally diversified and were developed for the purpose of being the prominent weighting in a portfolio. We continue to develop portfolios like these to take advantage of the ever changing global markets.
Our global models focus on penetrating the international developed and developing markets. We encourage you to browse through the various portfolios and the holdings within them. Take your time to review these models and based on your investment goals, apply parts of these models, or integrate the entire model into your personal portfolio. Check back often as we may add or adjust the models.
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The basic rules that govern fair value and creation of a portfolio

1Stock prices in the world’s market are continuously attempting to find true fair value. This is sometimes called volatility. When a market has a high level of certainty, volatility is low. The opposite is true when valuations are suspect.
2Every company, sector, and market has a true fair value that is a reflection of its ability to earn a profit, consistently, through excellent management and distinctive competencies.
3Stocks that are deeply undervalued by the market, have a higher probability of increasing to fair value as the true fair value is eventually discovered by the market.
4Stocks, sectors and markets that are highly overvalued by the market, have a higher probability of declining to reach true fair value.
5Over time the market will drive stock prices beyond fair value, both higher and lower, based on emotional behavior to follow the winner and abandon the loser.
6These valuations run true in bonds which is why premiums should not be paid. Trying to predict interest rates is difficult at best, and usually holds a disappointing outcome for the investor trying to time the market.

Investors are well rewarded by eliminating the emotions and focusing on true fair value.