Investment Philosophy

"A rule of behavior which does not imply the superiority of diversification must be rejected both as a hypothesis and as a maxim." - Harry Markowitz

"Properly measured, the average actively managed dollar must underperform the average passively managed dollar , net of costs." - William Sharpe

Libra's investment management philosophy is to apply academic portfolio theory, with its well accepted and proven emphasis on asset class diversification and risk management, to the portfolios of individuals and small organizations. Every portfolio is documented with a written investment policy that lays out the return expectations and the client specified constraints under which the portfolio is managed.

The firm recommends a passive investing style to keep costs down and usually recommends index funds for its clients.