The Invariant Advantage
We believe in delivering value. As fiduciary investment managers, whether you’re a private client or advisor partner, your best interest is our best interest. Transparency, integrity, and professionalism are at the core of who we are and the services we provide.
Our Investment Philosophy
The primary determinants of investment success are appropriate asset allocation and client behavior
Portfolio management and financial planning working in tandem is critical for achieving successful client outcomes
Behavioral mistakes can derail even the best investment plans and strategies – therefore, maintaining discipline is critical
Diversification across asset classes, geographies, and sectors improves risk-adjusted returns
Most investors do not have a perpetual time horizon. Proactive risk management can be a critical component for preservation of capital over the course of a full market cycle
Diversified Portfolio Investment Process
We offer clients both strategic and tactical asset allocation portfolios. All portfolios are constructed using the investment process described below.
1. We begin by approximating a cap-weighted benchmark and use this as a starting point in our portfolio construction process.
2. Within the constraints of the model, we adjust asset class weights up and down based on our active views.
3. Within asset classes, we then adjust geographical, sector, and factor exposure based on our active views.
4. Next, we determine the most efficient investment vehicles for achieving our desired exposure.
5. This leaves us with the final portfolio, which is reviewed regularly using this process.
Single Name Equity Strategy Process
We offer two quantitative long-only U.S equity strategies: Profitability Alpha and Quality Dividend.
1. Identify Universe
We begin with the S&P 500 Universe.
2. Screen for Profitability
We screen for firms that are generating high returns on capital with low reinvestment needs.
3. Screen for Earnings Growth
Next, we filter for non-negative earnings growth.
We then rank the remaining names using blended value, quality, and institutional accumulation metrics.
We aim to own the top 20 names generated by the process, and re-balance twice annually.
1. Identify Universe
We begin with the Russell 1000 Universe.
2. Screen for Yield
We screen for firms with moderate to high, but sustainable dividend yields.
3. Screen for Quality
Next, we filter for firms with higher margins than their peers.
4. Screen for Low Beta
Next, we filter for stocks that are less volatile than the broad market.
We then rank the remaining names using blended value metrics.
We aim to own the top 20 names generated by the process, and re-balance annually.