Titanium Advisors employs a “passive” asset allocation investment strategy which seeks long-term, tax efficient growth while simultaneously controlling risk and volatility. As it is impossible to consistently predict the short-term movements of stocks, markets, or the economy, we do not utilize market timing, short-term trading, or actively managed funds. In fact, we believe that buying into the latest “hot” investment trends only ensures substandard returns for years to come.
Our investment philosophy is based upon the work of Nobel Prize winning economists Myron Scholes, William Sharpe, Robert Merton, and Eugene Fama as well as world renowned professors Kenneth French of Dartmouth College and Roger Ibbotson of Yale University, who have developed an academic approach to investment management based upon statistical analysis and financial economics rather than Wall Street marketing hype.
In essence, this strategy breaks the world stock market into separate and distinct asset classes which perform somewhat independently of each other over time. As many of these market segments are vastly underweighted in most mutual fund offerings, higher returns can be achieved simply by diversifying an investment portfolio more broadly to include all of these asset classes.
This broad diversification of the portfolio across multiple, distinct asset classes reduces overall risk as the highs and lows of each segment tend to balance each other over time. Similarly, the discipline of rebalancing the portfolio periodically back to the original target allocation percentages should decrease long-term risk to investors as volatility is reduced throughout market cycles.
When appropriate, Titanium Advisors uses low-cost mutual funds offered by Dimensional Fund Advisors (DFA), an industry leader for over 30 years with respect to asset class diversification strategies, as well as those from Vanguard. DFA mutual funds are not available to the general public. Rather, they are offered only to institutional investors or through a select group of financial advisors such as Titanium Advisors. We encourage you to visit the DFA website (www.dfaus.com) to learn more about DFA mutual funds.