Portfolio construction
Uncorrelated yield
Yield is easy to find; yield whose risk you do not already own is not. We assemble income from sources whose risks are genuinely uncorrelated, sized by risk contribution rather than by capital.
ReadConcepts
The ideas we build with, in plain English
Short, evergreen explainers on the concepts behind how we invest — what each one means, why it matters, and how we use it. For the longer arguments, see our insights.
Portfolio construction
All-weather investing
Most portfolios are an implicit bet on one economic outcome. All-weather investing takes the other path: build a book balanced across the four economic regimes, so you are prepared for the environment that arrives rather than predicting which one it will be.
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Risk parity
A balanced-looking portfolio is rarely balanced in risk. Risk parity sizes positions by their contribution to portfolio risk, not by capital weight, so no single sleeve quietly dominates the outcome.
ReadMarket valuation
The Excess CAPE Yield
The equity risk premium expressed as a single number: the cyclically adjusted earnings yield of the broad market minus the real bond yield. A decade-long lens on forward returns — not a market-timing signal.
ReadFixed income
Rate normality: how to tell if yields are high or low
"Are bond yields too high or too low?" is one of the most consequential questions in portfolio construction — and one of the most loosely answered. Here is the disciplined way to ask it: against a real-yield anchor, not a headline.
ReadValuation discipline
Margin of safety
A margin of safety is the gap between what you pay and what a business is conservatively worth. We build that gap floor-first: quality before price, and an EV/EBIT test against the whole capital structure rather than a flattering P/E.
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