Cole Financial Solutions uses the Dimensional Fund Advisors (DFA) methodology in designing your portfolio. Our model is based not on speculation but on the science of capital markets. Our mission is to deliver the performance of capital markets and increase returns through state-of-the-art portfolio design and trading.
What makes Dimensional different is the confluence of art and science into the ongoing management of your portfolio. Our structured portfolios are designed to capture the returns of specific asset classes based upon decades of scientific research. The scientific approach is augmented by the art of investing; namely the judgment and skill needed to implement the science. Minimizing transaction costs, efficient engineering and innovative trading strategies are critical attributes of our approach to portfolio management.
Our core principles include:
* Markets are Efficient
85 percent of active managers don't beat the market
* Risk and Return are Related
The compensation for taking on increased levels of risk is the potential to earn
* Diversification is Essential
Reduce volatility and risk through broad global diversification
* Asset Structure is a Major Determinant of Investment Performance
Smaller and lower-priced value stocks have higher risk and greater expected returns than
larger and higher priced growth stocks
* Cost Efficiency is Key
Passive management and effective trading strategies can reduce overall investment