Asset management from a fiduciary.
The conventional approach to asset management is entrenched in the belief that markets are inefficient: highly educated stock-pickers can find mispriced securities and time the market to achieve superior investment returns.
Yet the overwhelming amount of academic research and historical data does not support this claim. According to S&P Indices Versus Active (SPIVA®), over the past 15 years (ending December 2016), 92% of actively managed large-cap funds have failed to outperform their benchmark.
Mid and small-cap managers have had even more difficulty outperforming their benchmark. Over the same 15-year period, 95% of active mid-cap managers and 93% of active small-cap managers failed to exceed their respective benchmarks.
Darrow Private Wealth Management Program
We believe that one of the keys to growing and preserving wealth over the long term is a shared dedication to the financial planning and investing process. When it comes to investing, we value discipline, diversification, and data. We don’t believe in taking on more risk than necessary or “stock-picking.” We do believe in helping you achieve your personal goals through a pragmatic and research-backed approach to investing.
Darrow is among a select group of advisors approved to access Dimensional Fund Advisors funds for our clients. Dimensional’s approach, based on Nobel Prize winning research, effectively bridges the gap between conventional (active) strategies and indexing. Instead of mirroring a commercial index, Dimensional uses the dimensions of expected returns, a framework that analyzes fundamental market data to select securities and capture higher expected returns. Unlike active managers, Dimensional seeks to add value by managing trade-offs: costs, diversification, and premiums.
Dimensional funds play an important role in our investment management strategy but we use other investments as well, such as low-cost exchange-traded funds (ETFs). Please contact us to learn more about our comprehensive wealth management program.
Our Wealth Philosophy
We believe that the fundamentals of a successful asset strategy must include:
- An understanding of your goals, personal situation, and risk tolerance
- A diversified portfolio of tax-conscious, low-cost mutual funds and ETFs to maximize your risk-adjusted return
- A dedication from both the client and the advisor to the long-term investment philosophy and financial planning process
As a fee-only financial advisor, our fees for Private Wealth Management are based on a percentage of assets under management. See our FAQ page for more information.