Fact Based Investing Methodology
Our Promise
Our investment approach is grounded in discipline, evidence, and clarity. As part of our commitment to you:
A) We do not make or follow market predictions B) We do not assume markets or investors behave rationally or efficiently C) We do not ask you to stay invested in equities regardless of market conditions
Instead, we rely on measurable data and a rules‑based process that adapts as markets change.
What Is Fact‑Based Investing?
Fact‑Based Investing remains fluid and responsive, using objective measurements rooted in supply and demand — focusing on what is, not what might be.
Two core truths guide our methodology:
1. Markets Trend
Markets move in extended trends that can last months or even years — commonly known as bull markets and bear markets. Because markets are often irrational and prone to emotional extremes, these trends can persist longer than expected. We use this to our advantage by identifying and participating in favorable trends, and stepping aside when conditions weaken.
(In simple terms: we determine whether it is advantageous to be “in” or “out” of the stock market.)
2. Performance Persists
Strength and weakness tend to continue rather than reverse abruptly. This concept — widely documented in academic research as momentum — shows that high‑performing areas of the market are more likely to keep performing well, while low‑performing areas often continue to lag.
Our portfolio construction process uses this principle to select investments with the strongest relative performance at any given time.
As Sir Isaac Newton observed in his Second Law of Motion: A body in motion tends to stay in motion. The same tendency often applies to market performance.
Summary
Fact‑Based Investing focuses on the reality of market supply and demand rather than predictions or theories about how markets “should” behave.
By combining:
Trend identification (when to be in or out of the market)
High‑performance selection (what types of investments show the strongest advantage)
…our strategy aims to achieve two primary goals:
Prosper during bull markets
Reduce potential risk during bear markets
All while aligning with your personal risk tolerance and long‑term objectives.