About Us > Investment Philosophy

Investment Philosophy

Our guiding philosophy is to allow sufficient flexibility in the management process while maintaining reasonable parameters to ensure prudence and care in the execution of investment programs for our advisors and clients. Dowd & Associates, Inc. will comply with all existing investment policy guidelines and will administer its duties solely for the benefit of the client with the care, skill, judiciousness and diligence under the prevailing circumstances that a prudent expert acting in like capacity and familiar with such matters would use in the conduct of an enterprise of like character, purposes and aims.

Dowd & Associates, Inc. believes that our clients’ long-term investment objectives will be achieved through emphasizing diversified investment strategies and through prudent management of those risks, which do not offer sufficient long-term rewards. Thus, investment strategies will be developed to seek consistent value-added performance relative to relevant market-based benchmarks and will incorporate effective risk controls. Dowd & Associates, Inc. investment philosophy is based upon a set of factors that have widely accepted theoretical and empirical bases.

  • Asset allocation has the most significant impact on investment results. Dowd & Associates, Inc. will focus significant efforts on the development and maintenance of asset allocation strategies that will try and fulfill investment objectives.
  • Some markets are efficient while others are less so or inefficient. Investment strategies may reflect a mix of active and passive investments, with passive investments being emphasized in the more efficient markets.
  • Capital markets revert to the mean over long-time periods. Investment strategies will generally be long-term in nature and will typically avoid ad hoc decision-making based upon short-term factors.
  • Costs have a meaningful impact on returns. Investment strategies will utilize cost effective approaches.
  • Investment strategies will focus on fundamentally based processes. Using valuation and analysis
  • Performance measurement and monitoring activities provide assessment of the success of Dowd & Associates, Inc. investment strategies and implementation of those strategies. Clear, unambiguous market-based benchmarks will be selected for each investment strategy. Performance reviews of all investment strategies are to be conducted at least on a bi-annual basis.