Our Investment Strategies
Anfield’s investment philosophy for our Global Multi-Asset Strategies (GMAS) is rooted in modern portfolio theory, but recognizes that it is actually risk factor allocation and not capital asset allocation, that is the most critical determinant of an investment program’s success. Further, history does not repeat itself, but it can be used to help develop estimates of future asset class and market behavior.
At Anfield Capital, we believe the following principles provide the framework for building risk diversified and managed portfolios across a broad spectrum of client requirements.
- The global capital markets are largely efficient in the long run.
- There is a trade-off between risk and return.
- Investors are not compensated for risk that can easily be diversified away.
- The mean-variance and capital asset pricing model frameworks are reasonable models of the risk/return trade-off at the asset class level, but
- Investors should budget and “spend” risk, not dollars/assets.
- Combining diversified risk allocated portfolios with intelligent selection of building materials and superior operation of the portfolio is the art and science of perfecting the portfolio.