Active-Passive Investing, Grounded in Research
An active-passive investing strategy designed to capitalize on the market's strengths. Cost effective, diversified, and designed for long-term stability.
Long Term Matters
We lean on the long history of academic research which demonstrates the link between financial fundamentals and the return to shareholders. These are the drivers of idiosyncratic or firm specific risks (and returns) where diversification, by holding many securities provides greater investor protection from losses by spreading the risk across these many assets.
Our process builds on the market's strengths instead of competing against it. We use targeted portfolio construction that we call active-passive investing. This approach offers a middle ground, provides cost effective, diversified and stability seeking market-like returns while striving for overall lower relative risk.
Portfolio Risk Matters
The standalone risk of an asset matters far less than its marginal contribution to risk in the investor's already diversified portfolio. Assuring no asset contributes an out-sized contribution to portfolio risk is a chief aim.
Remove Emotion from Investing
Focus on process. Automation, diversification, exploiting volatility as normal, applying rules and limitations. Good investing is boring – on purpose.
There Are Real Risks When Investing
Past performance is no guarantee of future returns and there is no guarantee BlueFire's strategies will achieve their goals. Real risks include loss of capital and their varying value during an investment horizon. Beginning investments, when redeemed, may be worth more or less than when originally made.
Don't Confuse Investing with Gambling
Gambling is guesswork on outcomes with no underlying value creation and zero-sum, while investing is the allocation of capital to productive systems where uncertainty is usually compensated for in the long term by increased value creation. Basically, gambling is hope on steroids, while investing, or responsible asset ownership can actually increase your capital.
Ready to Learn More?
Explore our investment process, read our latest insights, or get in touch to discuss how BlueFire Strategies can serve your portfolio.