No philosophy of investing will be successful without being deeply rooted in how markets behave. This objective history combined with research by leading academics has contributed to Pillar’s philosophy or “discipline” of how money should be managed.
Pillar believes that Capitalism and the financial markets which allocate scarce resources work. Period. While the pricing mechanism is not always perfect – it is closer to perfect than any investment manager will consistently be.
Asset Allocation explains returns.
The asset classes which a given portfolio is comprised of explain the vast majority of both the returns and the variability of those returns.
Returns are correlated with risk.
Investors will be compensated for taking higher levels of risk over time. Factors which can reduce risk are diversification and targeted asset class exposure.