There is much evidence to suggest that an investor can be his worst enemy when it comes to investing.  In fact, over the 20 years ending December 31, 2008, the S&P Index averaged 8.35% per year while the average equity fund investor earned an average of 1.87% over the same time period.*  Why? Natural human emotions can cause an investor to make poor investing decisions.  Everyone knows to “buy low and sell high,” but few people actually follow this rule.

“The investor’s chief problem – and even his worst enemy – is likely to be himself.”

-Benjamin Graham

Security Analysis, 1934

Blue Ocean Portfolios understands the emotional dilemma investors face.  We focus not only on managing portfolios but on managing investors’ reactions to these potentially detrimental emotions.

Our rebalancing system is based on the concept of “Constant Proportionality,” which automatically manages the exposure to any asset class.   This system “trims the sails” for you, assuring that you are selling into strength, buying into weakness, and never making attempts to time the market or pick stocks.

“Investors maintain targeted levels by following a disciplined program of rebalancing, using proceeds from selling assets exhibiting relative strength to fund purchases of assets showing relative weakness.  The existence of low-cost, passive investment vehicles facilitates the seamless implementation of policy asset targets in marketable security portfolios.”

-David F. Swensen

Pioneering Portfolio Management, 2000

“Serious Investors do not time markets.”

 -David F. Swensen

Pioneering Portfolio Management, 2000