RIDLEY ASSET MANAGEMENT, LLC

Our investment philosophy is based on the following principles: 

Reducing Taxes and Expenses Improves Returns

The simplest way to improve investment performance is by minimizing portfolio turnover, which reduces taxes and expenses.

Asset Allocation is the Key Determinant of Investment Performance

Ridley Asset Management formulates asset class weightings in our Strategic Asset Allocation Model (SAAM) using Modern Portfolio Theory. The process blends asset classes with low correlations to reduce overall portfolio risk. In addition, asset classes can reach extreme levels of over-valuation and under-valuation. Valuations that diverge from historical norms require adjusting the SAAM to maintain a portfolio risk profile.

Index-Linked Investments over Active Management 

Ridley Asset Management uses index-linked securities to manage our asset allocation focused investment strategies. These securities offer diversification, which minimizes single stock selection risk. They also offer tax and cost efficiency.

Discipline, Discipline, Discipline

Our investing discipline eliminates short-term behaviors. These include chasing returns, emotional decision-making, building concentrated positions in a stock, industry or asset class, or attempting to time the market.

Albert Einstein said, "the most powerful force in the universe is compound interest." Ridley Asset Management recognizes that our core investment beliefs reward our clients by allowing net after-tax, after-expense and after-fee returns to compound for the benefit of their accounts.

"Approximately 94% of variability of a fund's investment return is due to asset allocation."

(Conclusion of a study of ninety-one institutional pension funds over ten years)

~Gary P. Brinson, L. Randolph Hood and Gilbert L. Beebower in "Determinants of Portfolio Performance," Financial Analysts Journal, July-August 1986, "Revisiting Determinants of Portfolio Performance: An Update," 1990