Evidence-Based Investing (EBI)
A Disciplined Approach for Growing and Preserving Wealth
At Beacon Hill Private Wealth, we follow a disciplined, evidence-based approach to investing that prioritizes long-term growth, risk management, and cost-efficiency. For high-net-worth individuals, the stakes are higher, which is why our methodology is designed to maximize your returns while managing downside risks.
What Is Evidence-Based Investing?
Evidence-Based Investing (EBI) uses academic research, data-driven insights, and historical evidence to inform every investment decision we make. Rather than following trends or reacting to market noise, we base our strategies on rigorous studies that have stood the test of time. We leverage insights from experts like Nobel laureates in economics to construct portfolios built to weather market volatility while capturing growth opportunities.
The Core Principles of Our Investment Philosophy
Why EBI Matters for High-Net-Worth Investors
With more at stake, managing risk while seeking growth is critical. Our evidence-based approach is designed to protect your wealth across market cycles, ensuring it grows while avoiding unnecessary risks. We build tailored portfolios based on your unique financial goals, time horizon, and risk tolerance, offering peace of mind that your wealth is in expert hands.
How Our Approach Benefits You
- Minimizing Unnecessary Risks: Our strategies aim to limit the impact of market volatility on your portfolio.
- Tax Efficiency: High-net-worth investors face complex tax situations. We design portfolios that seek to minimize tax liabilities while maximizing after-tax returns.
- Transparency and Simplicity: We keep you informed every step of the way, with clear reporting and straightforward explanations of your portfolio’s performance.
Learn More About Our Investment Philosophy
For a more detailed look at our specific strategies, visit our Investment Planning page. Here, you’ll find a comprehensive breakdown of our approach and how it can help you grow and preserve your wealth for generations to come.
Why Beacon Hill Private Wealth?
Beacon Hill Private Wealth was founded on the principles of objectivity, evidence-based investing, and a commitment to helping high-net-worth individuals make informed, confident financial decisions. Let us help you protect and grow your wealth with a strategy grounded in data, not speculation.
Deep Dive: Evidence-Based Investing Explained
For those looking to explore our evidence-based approach in greater detail, we provide additional insights on how we apply the academic principles of investing to your portfolio.
How Do We Apply the Evidence?
Our approach to Evidence-Based Investing (EBI) means converting academic insights into sound portfolio management. To achieve this, we partner with a select group of fund families that are aligned with our principles. The core of most client portfolios is built using low-cost, asset-class mutual funds and ETFs from fund managers who are committed to passive and evidence-based strategies. We primarily partner with:
- Dimensional Fund Advisors
- Vanguard
- AQR Capital Management
- Bridgeway Capital Management
For fixed income portfolios, we offer tailored solutions to provide income or stability based on your unique goals, ensuring each bond portfolio is customized to meet your needs.
Why Does Evidence-Based Investing Matter?
At Beacon Hill Private Wealth, we believe in confident investing — focusing on your long-term goals while avoiding market speculation and distractions. This approach allows you to dedicate more time and energy to the things that matter most to you. Evidence-Based Investing isn't about chasing trends or reacting to short-term fluctuations. Instead, it's about letting academic rigor and historical evidence guide your financial journey.
Unfortunately, not all financial advisors adhere to these principles. Biases, emotions, marketing tactics, and compensation models can prevent a truly evidence-based approach from being implemented effectively. Our independence and fiduciary responsibility ensure that your financial plan is crafted with your best interests at heart.
Learn More: For a more comprehensive breakdown of these principles, download our Fundamentals of Asset Class Investing guide.
Asset class investing does not guarantee a gain or protect from a loss and involves risks, including the loss of principal.