An investment philosophy rooted in academia
There are two schools of thought an investor can adopt when it comes to managing their investment portfolio – active or passive management.
Investors who follow an active strategy believe they can take advantage of inefficiencies in the market through stock selection or market timing.
Passive investors understand the market is efficient and focus their energy on items that have a direct impact on investment performance such as portfolio risk, costs, and taxes.
Countless academic papers support the benefits of passive investing. To our knowledge, there isn’t a single peer-reviewed academic paper that demonstrates active management brings consistent, long-term value to investors.
At Claris, we are strong advocates of this academic approach. An evidence-based model that brings logic, transparency, and simplicity back to our client’s financial lives.