Our Services

Investment Management

Financial Experts. To Evolve With Investing.

Markets evolve. And we evolve with them. Investment advisors at BDF recognize that evolution is the very nature of investment management, and new discoveries are made every day. But the real challenge comes in separating the worthwhile from the worthless. What is a sound, proven philosophy? What is a good story or data mining? Can we realistically expect what worked yesterday to work today?

As experts in financial science, we’re deeply rooted in using research at the forefront of economics and investment management to answer these questions. But the algorithms and statistics only become significant as we apply all we know to your life – addressing your hopes and fears, your dreams and worries.

The Science of Factor Investing.

For decades, many financial advisors have based their recommendations on active management or indexing. However, that presents challenges. You can try to be an active investor, strive to pick the winners, but even if you come out ahead, the costs diminish the impact. With indexing, you can invest in a diversified, low-cost way, but you give up the ability to quickly take advantage of new opportunities.

There has to be a better way, and there is. Factor investing represents an evolution in investment management.

Four factors have been proven by researchers to reap the benefits of active management – namely the ability to do better – and combine them with the benefits of index management – staying diversified, not predicting the market, and keeping costs low. The power in the BDF approach is amplified by considering not just one factor, but evaluating these four factors in combination.

  1. Value: The tendency of relatively cheap assets to outperform relatively expensive ones.
  2. Momentum: The tendency of a stock’s recent relative performance to continue in the near future.
  3. Profitability: The tendency of more profitable stocks to generate higher returns.
  4. Size: The tendency of small company stocks to outperform large company stocks.

The Art of Behavioral Finance.

Investing isn’t all science. If not used in combination with a large dose of art, it becomes incredibly ineffective. Enter behavioral finance.

All conventional research assumes that people make rational financial decisions all the time. The field of behavioral finance – and likely your own experiences – tells an entirely different story. There are many scenarios in which psychological factors impel people to make emotional decisions about their money and investments – in part explaining unpredictable swings in the market. At BDF, we draw from research in this evolving field, helping you better understand the biases and group-think behaviors we all face that shape the market and your decisions.

The Implementation Quotient.

A good idea becomes a great idea when implemented correctly. That’s why BDF pays attention to the little details that matter. By intelligently implementing an investment strategy, you reap the benefits of lower costs, lower taxes, better risk management, and a net result of improving the performance of your portfolio.

Asset Placement

All investments are not treated the same from a tax perspective. You must consider which account you use to purchase your investments in order to reduce the impact of taxes on the performance of your portfolio. After-tax returns is what counts!

Rebalancing

It’s the beginning of the year, time to start fresh and rebalance, right? Not at all! Rebalancing is a prudent approach to managing the risk you are taking on, but there’s a better way than just rebalancing because the calendar told you to. Our approach takes into account the daily movement of all assets you invest in to see IF it makes sense to rebalance based upon actual performance, rather than the calendar.

Low Expenses

There’s one thing that is certain with investments, and that is costs. Keeping these as low as possible, while being mindful of the exposure you get, is key to enhancing long-term returns. At BDF, we have access to institutional shares which have lower expenses, further driving down your costs.

Withdrawal Strategies

You’ve created wealth for a reason, and at some point you’re going to want to use it. But where do you start? Organizing a withdrawal plan, and taking out money in the most cost-effective, tax-sensitive way, adds to your bottom line. BDF is here to ensure you spend money on what you want, not on needless taxes.

Ready to take the next step?

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Your BDF Expert Team

“Our customized approach is what helps people come to BDF and it's what makes them stay.”
Mark Balasa CPA, CFP® Co-Founder & CIO