Ten Asset Philosophy

Our goal is to construct portfolios to maximize active return while controlling risk and the costs of trading.

Our research process is designed to find opportunities which arise from a myriad of factors which prevent markets from achieving efficiency. We select only the most attractive opportunities based on the factors that are relevant to that particular security. Our portfolios are constructed to balance active return, multiple dimensions of risk and trading costs.

Market inefficiencies are not necessarily obvious for any particular equity at a given point in time. Our research consists of isolating and comparing certain fundamental factors relevant to individual equities with the relative values of those same factors within comparable peer groups of equities. At the same time, we also consider the risks and weaknesses of the individual equity and the market sector. We understand that the market will not reward all of our conclusions. To counteract this timing risk we apply limits to our client’s active exposures to industry sectors and the market overall and seek to limit portfolio turnover. We believe that the market more reliably corrects relative and sector mispricing than absolute mispricing and as a result we do not make market timing bets. This process coupled with risk management and careful trading allows us to add value.