High Probability ADVISORS

Factor-based Investing

Isolating the most critical factors to success.

From business and advertising to sports and fitness, advanced analytics are reinventing industries across every sector. Now they’ve inspired a smarter approach to investing designed to give you the highest probability of success: factor-based investing.

Value Momentum Quality Minimum Volatility Size

Maximizing performance.
Minimizing risk, costs, and tax consequences.

A factor-based approach is the next evolutionary step in investing, combining the most attractive aspects of both active and passive investing.*

Active

(Stock pickers)
  • Opportunity to outperform
  • Higher risk
  • Tax consequences

Passive

(Index funds)
  • Market return
  • Market risk
  • Low cost
  • Improved tax treatment

Factor

(HPA)
  • Higher probability to outperform
  • Risk managed
  • Low cost
  • Tax efficient

Consistent performance.
Compounded over time.

graph

Over a simulated 15-year period from April 2003 to September 2018 using actual market conditions, HPA risk-focused portfolios saw a 456% return versus 359% from the market.

 

HPA Risk-focused portfolio
Benchmark portfolio

 

Fewer than 15% of active managers and 0% of passive managers outperform the market over a full market cycle.**

Our goal is to outperform the market by 1 to 2% each year over the same span, which factor-based models achieve 80% of the time.*

 

GET SMARTER. GET HIGH PROBABILITY ADVISORS.

Call (585) 485-0135 to discuss how a factor-based approach could pay off for you.

 

* Berkin, A. L., Swedroe, L. E., & Asness, C. (2016). Your Complete Guide to Factor-Based Investing: The Way Smart Money Invests Today. St. Louis, MO: BAM ALLIANCE Press.

** Soe, A. M., & Liu, B. (n.d.). SPIVA® U.S. Scorecard (Mid-Year 2018 ed., pp. 1-31, Rep.). S&P Dow Jones Indices LLC.

High Probability Investors is an SEC registered investment adviser. Registration as an investment adviser with the SEC does not imply a certain level of skill or training. For additional information regarding High Probability, visit the SEC’s website—https://www.adviserinfo.sec.gov/IAPD/default.aspx. Some information contained in this website was obtained from third-party sources not affiliated with High Probability but believed to be reliable. High Probability is not responsible for the accuracy, adequacy, or completeness of information contained in this brochure. Investing involves the risk of a partial or complete loss of principal that prospective investors should be prepared to bear. Past performance is no guarantee of future results. The value of an investment, as well as any investment income, can fluctuate based on market conditions.

“Past performance is not indicative of, and cannot ensure, future results.  The performance results of the model portfolio reflect the reinvestment of dividends and other earnings.  However, the performance results of the model portfolios are presented gross of the advisory fees, brokerage fees, and other associated expenses.  The model portfolios are derived from the retroactive application of a model developed with the benefit of hindsight.  High Probability Advisors began managing assets utilizing this model starting in August 2018; performance data before this date reflects performance before the firm began managing assets with this strategy.  There are limitations inherent in model results; particularly, the results may not reflect the effect of material economic and market factors on the adviser’s decision-making, if the firm had actually been managing clients’ assets.”