IVA System

To break from our all too human tendencies to avoid losses even when it is disadvantageous to do so, chase performance, and perceive patterns where there are none, we must find an investment strategy that removes subjective, human decision making from the process and relies instead on smart, empirically proven systematic strategies. …we can become wise by realizing just how unwise we truly are. – James O’Shaughnessy, from the 4th edition of What Works on Wall Street

We use our IVA System, along with Insider Buying Themes, for that portion of a client’s portfolio dedicated to individual stock selection. The System combines three proven Factors (For more on Factor based investing, please read here) in a quantitative approach: Insider Buying, Valuation (PEG if available, otherwise EV/EBITDA or EV/EBIT), and Analysts. The System synthesizes the best of both academic theory and rigorous real-world evidence to provide the bedrock of each client’s portfolio, especially those with a goal of Capital Appreciation.

The White Paper below began its life as an Honors Thesis on the IVA System (formerly called the IVE System) that included a study of the system’s performance, and has been updated as new research has emerged. At the request of the Oklahoma Department of Securities, the study portion of the paper has been removed.