Improve risk-adjusted returns

Decades of research shows that the vast major­ity of active man­agers under-­per­form their bench­marks. It is no acci­dent that 40 – 50% of insti­tu­tional investors use pas­sive invest­ing.  We fol­low the rec­om­men­da­tions of aca­d­e­mic and indus­try research, and use the tech­niques we employ through the 3 factor to help improve after-tax returns.

Lower portfolio risk

Most port­fo­lios are not ade­quately diver­si­fied.  A port­fo­lio using indi­vid­ual secu­ri­ties might have 50 stocks, while a glob­ally diver­si­fied 3 factor port­fo­lio would have thou­sands of under­ly­ing stocks of many types: large and small: growth and value; domes­tic and inter­na­tional.  Such broadly diver­si­fied port­fo­lios have been shown to lower risk while often increas­ing expected returns.

Sim­plify holdings

Most investors acquire stocks, bond and mutual funds hap­haz­ardly over the years with­out ever review­ing them in aggre­gate.  By tak­ing a holis­tic look at your port­fo­lio, often we can help you sim­plify your finan­cial life as well as make your port­fo­lio work harder and more intel­li­gently for you.

Reduce finan­cial stress

The gyra­tions of the stock mar­ket are un-nerv­ing for even the most sea­soned investors.  While even glob­ally port­fo­lios are sub­ject to mar­ket fluc­tu­a­tions, know­ing that your port­fo­lio is diversified across equities and fixed income should reduce you sleep well at night.

Pro­vide edu­ca­tion on finan­cial man­age­ment affairs

Suc­cess­ful invest­ing requires a long time hori­zon.  The more knowl­edge­able and com­fort­able you are with your invest­ment strat­egy, the greater the chance you will stay the course through the inevitable mar­ket ups and downs.  As your long term finan­cial part­ner, in as much as your time allows, we strongly encour­age you to fur­ther edu­cate your­self on 3 factor’s approach to investing.

Help achieve finan­cial goals

By tak­ing the time to under­stand your unique finan­cial sit­u­a­tion we will work together to under­stand your objec­tives and help you achieve them.

Better Returns Through Research

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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.