Efficient Market Hypothesis

The efficient market hypothesis evolved in the 1960s from the Ph.D. dissertation of Eugene Fama. Fama persuasively made the argument that in an active market which includes many well informed and intelligent investors, securities will be appropriately priced and reflect all available information.

In reality, markets are neither perfectly efficient nor completely inefficient. Our experience has led us to believe closed-end mutual funds are an inefficient market. With our expertise in this area, we strive to capitalize on this inefficiency. Where markets are more efficient, we use exchange-traded securities, index funds and institutional asset-class mutual funds.

Using these same techniques, we can integrate individual stocks into a broadly diversified portfolio. We have no bias toward any particular investment vehicle. We use what works best to meet portfolio objectives.