Efficient Profile

Efficient Market Advisors

ABOUT US

  • Founded in 2004
  • SEC – Registered Investment Advisor
  • Pioneer in ETF SMA “ETF Strategist” Space
  • Over $1 billion AUA as of 12/31/2019
  • 15 ETF SMA Strategies Available
Investment Philosophy

Our investment philosophy, rooted in academia and nurtured by real world experience, is designed to provide “optimal” before and after tax returns to investors.

Modern Portfolio Theory

We use the term “optimal” because our investment philosophy has at its origin in the Modern Portfolio Theory pioneered by Nobel Prize-winning economist Harry Markowitz. Modern Portfolio Theory (MPT) says that for every level of risk an investor is willing to assume there is an optimal asset allocation that is expected to produce the highest result.  Mr. Markowitz is not affiliated with EMA.

Efficient Market Hypothesis

We also subscribe to the efficient market hypothesis (EMH) that proposes that security markets are efficient at distributing and incorporating information into security prices. Simply put, the current price of any security incorporates all information currently known about the security and that no one individual can (unless he possesses inside information) know more than any other individual about the future performance of any security. Therefore, the theory asserts that no one can predict accurately over a statistically significant period of time, changes in stock prices.

Active Asset Allocation, Passive Security Selection

EMA believes in building portfolios that maximize returns without using higher-cost, actively-managed mutual funds, individual securities or cookie-cutter investment products. We don’t believe in “market timing.” Our proprietary approach is comprised of strategic, tactical and opportunistic elements using ETFs.

Strategic Asset Allocation considers an investor’s time horizon and the historical interrelationship of asset class prices irrespective of the current macroeconomic environment or the state of the business cycle.

Tactical Asset Allocation implements EMA’s investment views by adjusting the various asset weightings in a portfolio. EMA uses a top-down approach that considers multiple variables including relative valuation, economic cycle positioning, interest rate spreads, monetary and fiscal policy, political factors, yield curve analysis, and industry and sector valuations.

Opportunistic Investing provides the potential to add “alpha” or value to a portfolio by maintaining the flexibility and willingness to act when unexpected events occur that cause over or under valuations of an asset class, sector or industry.