Investment Approach

Brookstone focuses on a "sleep at night" approach to investing and asset allocation. This does not mean we target low, boring returns, only that we understand the risk we are taking and expect to get paid for it.

Every five years or so (2007, 2002, 1998...) many money managers claim that their performance has been affected by a once in a lifetime 100 year flood. We believe that our clients' investment approach can plan for this and avoid much of the fallout.

The result is that we reduce risk, maintain liquidity and over time are highly likely to out-perform most investment approaches.

Investment Philosophy

Cutting Edge Research-Based Approach

Many of the programs we offer, as well as our asset allocation principals, are backed by cutting edge academic research on the behavior of markets, as well as a strong sense of historical perspective. We have created the next generation of core equity indexing products, which, when coupled with our asset allocation approach, dramatically limits risk, and over most timeframes outperforms most indexes and active managers.

Some of this research is based on work in:

  • Behavioral economics by Robert Schiller, Richard H. Thaler, Amos Tuersky and Daniel Kahneman
  • Macroeconomic cycles as in Manias, Panics and Crashes by Charles Kindleberger and Robert Aliber and Demons of Our Own Design by Richard Bookstaber
  • Recent studies on volatility by Lubos Pastor and Robert Stambaugh