Philosophy
Alesco's philosophy focuses on asset allocation, the primary driver of investment returns. We concentrate on analyzing specific asset classes, establishing appropriate asset class weightings, obtaining optimal diversification, and rebalancing our portfolios on an ongoing basis. Our core investment philosophy embraces the findings of numerous academic and industry studies. This research indicates that the majority of active investment managers do not outperform their benchmarks over time. Moreover, there is no persistency in the performance of active managers (i.e., those managers who have performed favorably in the past are no more likely to perform favorably than any other managers prospectively). Therefore, Alesco rarely uses active investment managers in structuring client portfolios. Instead, we prefer index-based, or near index investment vehicles. This philosophy allows us to eliminate many of the common risks and mistakes of investing. As a result, our efforts focus on proper asset allocation, broad diversification, and keeping costs low.