Ockham Wealth Advisors’ methodology has been developed through years of refinement and numerous alpha generation studies. The backbone of the methodology comes from two decades of analysis at Ockham Research, a quantitative equity research firm founded by the managing members of Ockham Wealth Advisors.The Ockham approach to investing is meant to slice away the extraneous factors from the investment process by focusing on only the most impactful items. Historical analysis demonstrates that analyzing hundreds or thousands of factors across multi-factor systems yields little to no benefit, where the Ockham methodology has consistently demonstrated superior performance.
Ockham identifies stocks that are currently priced outside of their normal valuation ranges on such categories as price-to-cash earnings and price-to-sales, as well as other factors. We then incorporate dividend analytics and risk mitigation tools to arrive at a stock selection and ranking methodology on thousands of U.S. stocks and ADRs. From that stock selection and ranking, Ockham works with Abacus Analytics, a partner firm, to optimize the portfolios and selections across a robust alpha optimization platform hosted and managed by Abacus Analytics. This partnership identifies additional risk and return parameters that augment the efficacy and alpha accrual timeframes associated with each investment decision at Ockham.
Ultimately, Ockham utilizes a fundamental approach that is based upon a combination of value investing concepts, exchange and sector risk analytics, and finally the relationship of stock price to each metric over time, providing a more technical overview. This hybrid approach has been successful in identifying undervalued securities in undervalued sectors with strong price to trend characteristics. While a simple solution is not always obvious, the approach at Ockham has taken decades to refine and leverages the experience and focus of each of its founders.
At Ockham Wealth Advisors, we recognize that every client has different goals and objectives when it comes to their investment portfolio. This is the reason why we utilize the separately managed account structure to provide total transparency and access to our clients at all times. Our research methodology performance is shown to highlight the solid methodology and logical approach that is the underpinning of the OWA client experience. Every separately managed account will achieve different performance levels based upon the individual goals and preferences of our clients and the results of the ongoing discussion between OWA and client throughout the wealth management process.