Investing

A Different Kind of Investing

Low-cost. Evidence-based. Disciplined.

The kind of investment management we provide to our clients seeks to minimize biases and is designed to get results based on evidence, not outdated practices or unfounded partialities.

At Carriage Hill Investment Associates LLC we believe evidence-based investing removes the excess information, hype, and emotion to minimize behavioral biases. It’s an outcome of behavioral finance, which studies how psychology influences investors’ behavior and the potential impact it has on financial markets.

Our clients’ assets are allocated based on the practices of Nobel Prize-winning research by Harry Markowitz, to minimize the impact of behavioral biases Richard Thaler identified in his Nobel Prize-winning work. We seek to minimize biases such as:

• Outcome Bias – when investors make decisions based on outcomes, not process.
• Recency Bias – when financial experts place an overemphasis on recent events in decision making.
• Confirmation Bias – sometimes people tend to emphasize ideas that confirm their beliefs or feelings.
• Hindsight Bias – as we look back, we might remember predictions of the future more accurately than they actually were.
• Overconfidence Bias – sometimes investors have unreasonable faith in their own judgement. 
• Illusion of Control – people might think investment outcomes can be controlled, even though they cannot.

Because of our belief in evidence-based investing, our clients will see us using low-cost index funds (small amounts can add up, and we want to protect you from unreasonable fees!), a broad global diversification, and regular rebalancing of all investments to maintain stability for each account. You’ll get the benefit of skillful financial planning and a verified academic approach.