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Evidence-Based Strategies

Investment Philosophy

Yahara client portfolios focus exclusively on evidence-based strategies designed to capture market returns in a low-cost, tax-efficient manner. Research has shown that investors experience higher expected returns when they don't try to "beat the market." We focus on capturing — not trying to exceed — the returns of an asset class while minimizing clients' costs and tax burden.
 What is evidence-based investing?

Client portfolios are tilted toward small and value companies to increase the expected return in stocks. We strive to decrease overall portfolio risk and volatility by using high quality short- and intermediate-term bonds.

We build portfolios from companies dedicated to evidence-based investing.  These include, but are not limited to, Dimensional Fund Advisors (DFA), Bridgeway, and Vanguard.  

For stocks, we primarily use low-cost mutual funds and exchange-traded funds (ETFs) for the broad diversification they offer. For a bond allocation of sufficient size, our dedicated Fixed Income Desk can customize a laddered portfolio of individual taxable or tax-exempt bonds based on a client's tax bracket and cash flow needs.

Mutual funds and ETFs are appropriate even for very large portfolios.  With that said, we can build an evidence-based portfolio of individual stocks if a client's situation warrants.  Most often, this would be if a client comes to Yahara with a large portfolio of individual stocks that would cause undesirable tax consequences if sold.

 An Introduction to Dimensional Fund Advisors