All investors in aggregate form the market. Therefore, it must be the case that the average investor earns the market rate of return less fees and expenses. Managing costs (management fees, operating costs, trading costs, taxes, etc.) allows investors to capture more of the capital market return that is there for the taking. Keeping costs down puts the odds of success in your favour.
We believe that our strategies have trading and tax management advantages that are impossible to replicate with active management or traditional indexing. The value-added in the funds we use tends to be bigger than historical active management value-added from stock picking and timing.
