OUR PHILOSOPHY
  • Overview
  • Our Beliefs
  • Benefits
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    WISDOM
    “Properly measured, the average actively managed dollar must underperform the average passively managed dollar, net of costs."
    William F. Sharpe, Nobel Laureate in Economics, 1990
     
    OUR INVESTMENT PHILOSOPHY - OVERVIEW

    Conventional wisdom dictates that investment products and investment professionals generate returns for investors... the founders of PCM believe otherwise.

    PCM understands that returns are generated as a result of capitalism. When investors commit their financial capital to the markets it is reasonable for them to expect to earn a positive return, over time.

    • Markets are efficient
    • Expected returns are a function of risk
    • Diversification is critical
    • Asset allocation is the primary determinant of performance

    We believe asset allocation determines performance, not asset managers. Therefore, the best strategy is to gain exposure to the appropriate asset classes in a cost-effective manner, by avoiding excessive trading commissions, taxes and market-timing penalties.

    We do not try to outsmart the markets, predict the future, or take guesses with our clients' money. We structure portfolios with low-cost, passively-managed asset class funds.

    Copyright © 2018; Passive Capital Management, LLC. All Rights Reserved.