It’s Our Disciplined Process
Evidence-Based. Systematic. Time-Tested.
Deep Dive
We dive into the academic research to identify those factors that have worked well for a very long time. We’re not interested in a strategy unless it demonstrates strong, persistent performance for 50 years or more.
Careful Selection
We cherry-pick only those investment strategies that are repeatable, durable and scalable. We exclude those that have excessive volatility, insufficient liquidity or are prone to cherry-picking or data mining
Diversification
We employ multiple strategies. No strategy works all the time, for if it did it would become so widely copied as to lose its effectiveness. Therefore, we seek to pair different strategies with excellent long-term records but that are uncorrelated over the short-term so as to mitigate overall portfolio volatility.
Monitor
We invest in a broadly diversified portfolio comprised of stocks chosen by our formula-driven investment models. But we don’t stop there, as our research is an ongoing process of discovery. As new insights emerge, we’ll continue to refine and update our strategies.
Common Questions
Click on each to learn more.
WHAT MAKES PRIMEVIEW DIFFERENT FROM OTHER ADVISORS?
In a word, discipline. We believe in following a disciplined, systematic process, one built upon time-tested investing principles. Successful investing is as much about looking in the right places as it is about good judgement.
DON’T YOU NEED TO APPLY JUDGMENT TO INVEST WELL?
Judgment, or common-sense, is important in thinking about how to invest. It’s important to have an understanding of financial history, economic policy and risk in order to understand the opportunities and challenges of investing.
WHAT IS YOUR INVESTING STYLE?
We look to buy good businesses at a deep discount to intrinsic value. Both of those factors are important: it’s not just about buying a business on sale, it’s about buying a quality business on sale. We avoid investment ‘style boxes’, as we think they are a disservice to investors. They lock investors into a very narrow group of stocks, often missing out on excellent investments elsewhere. We believe in casting a wide net to find as many opportunities as possible.
WHAT DO YOU LOOK FOR IN AN INVESTMENT?
Academic research reveals three enduring investment factors, or anomalies, that historically have delivered above-average returns. Those factors are Value, Quality and Momentum. Value stocks are defined as those selling at a deep discount to their intrinsic value. Quality is best defined as companies with a high return on capital or high profit margins. Momentum is a reflection recent trends, i.e., those businesses with relative price or earnings strength relative to the overall market.
DO YOU PREFER LARGE CAP OR SMALL CAP STOCKS?
We are agnostic with respect to stock capitalization, and consequently our portfolios typically include a broad representation of stocks, from the largest blue-chip stocks to select small caps. History shows that having some exposure to small caps can be very beneficial, provided these stocks also demonstrate some measure of value, quality or momentum (or combination thereof).
DO YOU SHORT STOCKS?
In long only accounts, no. For qualified investors who prefer an extra measure of risk management, we provide an absolute return strategy where we apply our same disciplined process in shorting overvalued stocks and ETFs. We also sell index call options because of their favorable tax treatment.