Our Philosophy

Long-term wealth building requires a solid, time-tested plan and the discipline to stay on course. We manage our clients’ portfolios using exactly the same approach as is used to manage over $2 trillion of institutional portfolios (pensions, endowments, foundations and universities). This takes the guesswork out of investing based upon the proven research developed over the past five decades by some of the top economic minds of our time. These Nobel-Prize winners, whose philosophies we follow and embrace, have been acclaimed for their research regarding the two key portfolio variables:

                 Maximizing returns 
                                  
                                while minimizing risks.

These synergistic concepts have some pretty big and baffling names – Modern Portfolio Theory, Efficient Market Theory, Efficient Frontier, Pure Asset Classes, Minuscule Transaction Costs and Low Cross-Correlation Coefficients. We take these big ideas and help you understand them in simple layman’s terms. More importantly, we take a comprehensive approach to help you realize true financial success.

 

At DiNuzzo Investment Advisors, we subscribe to the theory of Index/Passive Management. We aren’t driven by economic forecasts of business cycles or interest rates, we don’t shuffle allocations between stocks and bonds and we have no analysts constantly on the hunt for “undiscovered” stocks.

 

While conventional index fund managers share this passive approach, we differ in some important aspects. DiNuzzo Investment Advisors equity fund selections are not designed to simply track existing benchmarks, but to capture separate dimensions of worldwide returns which are accompanied by independent and unique sources of risk. These dimensions are identified by rigorous academic research, often conducted by one or more of the leading financial economists we follow.

 

Our fixed income strategies also depart from conventional index fund practice. We employ a "variable maturity" approach that involves no interest rate forecasting, but shifts the portfolio maturity structure in response to changes in the shape of the yield curve. We utilize the Fixed Income Asset Class Allocations for the primary purpose of reducing the risk of the overall portfolio.

 

The concepts and approaches we utilize to manage portfolios are theoretically sound and empirically substantiated by all studies and research papers to date. The research shows that such passively managed portfolios have outperformed up to 75% of all conventional, actively managed portfolios over 5 to 10 year market cycles.