Mount Lucas              
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Our Investment Philosophy
Our investment philosophy is founded on two fundamental principles of modern finance:
  1. Every asset class has a core return that is driven by market conditions, rather than manager skill. These core returns can be measured by passive, price-based indexes.
  2. A skilled investment manager can potentially augment these core returns through active strategies that are based on thorough research, multi-disciplinary analysis, and effective risk management.
At Mount Lucas, we believe that investors can potentially benefit from the diversification opportunities presented by both passive indices and actively managed strategies.

We design our investment offerings to reflect and capture the fundamental drivers of performance within economies, among asset classes, and across industry sectors. We use a multi-faceted approach that relies on proprietary quantitative models and the collective, discretionary insight of our investment team to distill and anticipate the fundamental drivers of performance, including:

  • The critical variables that impact growth and returns
  • The relative weights of these variables
  • The interaction of these variables in shaping results
  • The change in these variables over time

The aggregate analysis, a product of both research and discussion, is a direct application of our investment philosophy at Mount Lucas.