Our Investment Philosophy
No one can consistently predict the future. Yet, there are prudent ways to invest with the information currently available, in order to find assets with attractive risk-reward potential in both public and private markets.
We take an evidence-based approach, using variables that are known, measurable, and historically reliable in order to build diversified portfolios for our clients. While markets are generally efficient, with current prices reflecting most available information, beginning valuations do matter. Investors should favor portfolios with attractively priced assets, versus portfolios containing assets dependent on optimistic projections far into an unknown future.
Furthermore, liquidity matters. Public assets may be sold at any time, therefore private investments must offer superior risk-return characteristics to be investable. Through our process, we intentionally limit prognosticating into the future and seek to avoid the behavioral finance traps investors face.
Annandale builds well-diversified portfolios consisting of traditional bonds and stocks that are complemented by select opportunities in private markets.
While we invest in several alternative asset classes, we focus most of our private markets research on:
- Private Equity
- Oil & Gas Minerals
- Real Estate
- Private Credit