Equity Process

JB Investment Management’s Equity Process is a passive, index-based approach that employs the use of Exchange-Traded Funds (EFTs). Why?

The most common equity classes, such as the S&P 500 or Russell 1000 indexes, and their subsets-Growth, Value, Large-cap, Mid-cap, Small-cap, are easily replicated using low cost investment vehicles.  These broadly-defined segments have also proven to be some of the more difficult for active managers to consistently add alpha (or, excess return).

In other equity asset classes, such as international and/or emerging markets, active management has greater opportunity to add value. Unfortunately, achieving consistent returns remains a difficult proposition for most investors. For this reason, selecting the best managers in each of these asset classes is difficult, with the high costs of active management often limiting the advantage for most investors.

The selection process requires both identifying a winning manager who, in turn, can consistently identify winning stocks, and do so for a reasonable cost.

JBIM has established a series of equity market exposures that offer considerable diversification and provide for a wide range of risk and volatility profiles.  Clients can select from one of our pre-established profiles or have one customized for their unique objectives.