Bob Lux­en­berg, Partner and Chief Technology Officer

Ed Rodden, Partner and Chief Executive Officer

Bob Sawyer, Director of Operations

Art Shaw, Partner

3 factor is a Registered Investment Advisor and wealth manager, serving individual investors nationwide. As of December 31, 2016, we had approximately $117 million in assets under management. We are based in Woodside, California.

With over 50 years of experience in the financial services industry with a variety of leading financial institutions—such as Charles Schwab & Co., Chase Manhattan Bank, and MyCFO; our executive team brings deep expertise and a long-term perspective on the science of portfolio investing.

3 factor’s investment philosophy is built on the core belief that better returns can be achieved by following the best findings of academic financial research and employing many of the same disciplines used by highly-successful endowments and institutional investors.   3 factor begins our work with our clients by building personalized asset allocations, which leverage the work of Nobel prize winning research such as Cap-M Theory and Fama-French 3 Factor model.

Located on the edge of Silicon Valley, 3 factor has built its own customized software- the 3 factor Engine™- to allow us to improve returns for our clients through opportunistic portfolio re-balancing and advanced tax-engineering.

Our Reason For Being

Our work over the years in the investments and financial services industry has convinced us that most individual investors and financial advisors are poorly served by the dream of “beating the market”.   Even the most sophisticated institutions, with access to the best alternative investments, have come to the realization that the core of their long-term portfolios should be built on a disciplined asset allocation structure including US and International equity and fixed income markets.

Our goal in founding 3 factor has been to demystify investing for individual investors.  That starts with providing our clients with the results of the best academic research on investing.  In addition, at Sythium we focus on low-cost indexing solutions and a commitment to transparency on both investment returns and expenses.  We believe in the science of investing and the power of compounding small gains from cost management, portfolio re-balancing and tax-loss harvesting to help our clients grow rich over time.

Our People

Bob Lux­en­berg, Partner and Chief Technology Officer

Prior to becoming an Investment Advisor, Bob was a serial entrepreneur, co-authoring four software patents and co-founding several successful technology startups, including Packeteer (now part of Blue Coat) and Vina Technologies. Bob held senior management and technical roles at other pioneering ventures such Hybrid Network, Metricom, and Interactive Network.

Since the early 1980s, Bob has seen firsthand the futility of active management and became a convert to asset class investing.

Bob received his Bachelor of Science degree from Penn State in 1977 and MSEE from the University of Bridgeport in 1981. An avid bicyclist, Bob lives in Woodside, California with his family.

 

Ed Rodden, Partner and Chief Executive Officer

With over 30 years of experience and leadership positions in financial services, Ed runs 3 Factor and heads the Investment Practice.

Early in his career Ed spent 7 years with Chase Manhattan Bank in New York and Asia where he worked with institutional clients as well as banking and investment management firms.

Later at McKinsey Ed focused on strategy and execution for banking and mutual fund companies. Major initiatives included building investment advisory capabilities, mergers and acquisition work, post-merger operational integration and new product launches.

Ed spent over 13 years at Charles Schwab where he held several senior leadership positions including head of Corporate Strategy and head of Retail Marketing, SVP for Affluent Client Services, and Chief of Staff to the CEO.

Ed also served as Managing Director for HRJ Capital, a private equity fund-of-funds company. At HRJ, Ed expanded the investment management team and capabilities in venture capital, leveraged buy-out, real estate and hedge fund product areas.

After leaving HRJ Capital, Ed returned to his consulting roots, working with major brokerage firms, trust companies, and asset management firms at Silicon Valley Consulting.

He holds an MBA degree from Stanford Graduate School of Business and an undergraduate degree from Princeton’s Woodrow Wilson School, and has done post-graduate work at the Delhi School of Economics.

Ed lives in Aptos, California with his wonderful wife, Leslie.

 

Bob Sawyer, Director of Operations

Bob leads Operations and Compliance at 3 Factor. Bob began working at 3 Factor in 2012 and played a key role in developing the 3 Factor Engine.

Prior to becoming an Investment Advisor, Bob held product management and marketing positions at Silicon Valley technology firms, both large and small. Bob had key operational roles at Tandem and HP where his customers included stock exchanges, banks and brokerage firms.

Bob has a Bachelor’s degree from Northwestern University and an MBA, with an emphasis on finance, from the Kellogg School of Management.

Bob resides in Woodside, California with his wife and children.

 

Art Shaw, Partner, Co-founder

Art has 20 years of experience building companies to become leaders in their industries. He guides 3 Factor’s overall business strategy, and is concurrently CEO at RepairPal.

Art served as President and CEO of myCFO, which he built from an idea to the nation’s top-rated wealth advisory firm two years in a row, according to Bloomberg Wealth Manager. Art grew myCFO to over 350 clients, each averaging $135 million in net worth, and $48 billion in assets under advisement.

Previously, Art was at Charles Schwab, where he launched www.Schwab.com and grew it to over $1 billion in revenue. Art also created and ran Schwab’s Strategic Planning Group where he developed several core offerings, such as the Schwab Advisor Network and Wealth Management / Private Client Services.

Art also held positions with McKinsey and Chase, and ran Connexus, an internet media startup.

Art holds a Bachelor’s degree, magna cum laude, in Mathematical Economics from Brown University, where he was elected Phi Beta Kappa, and an MBA from Stanford. He was also selected as a Henry R. Luce Scholar and spent a year in Thailand working on Public Policy.

Art lives in Woodside, California with his family.

Better Returns Through Research

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(1) Bloomberg mag­a­zine, June 2001 (MyCFO)

Past per­for­mance is not a pre­dic­tor of future performance.

3 factor has con­ducted exten­sive analy­sis con­cern­ing port­fo­lio per­for­mance. See “impor­tant dis­clo­sure” for details and dis­claimers regard­ing our state­ments con­cern­ing per­for­mance, and the var­i­ous assump­tions we have made in our analy­sis.