Featured Index Advisor
At Linden Thomas, we believe most indexes focus on the wrong things like weighting the index based on the size of a company (market cap). Few indexes screen for quality earnings or growth and many indexes therefore hold many low-quality companies. The chart below is a historical comparison of the Vanguard 500 Index and our Earnings Focus (SMA) Index LTLEFT.
Unlike a mutual fund index or index ETF, where stocks are selected based on market cap (cap size), our factored growth indexes use earnings quality to determine if a stock qualifies. After all, financially-healthy companies tend to outperform unhealthy companies. By “quality”, we mean that these companies are profitable, have strong earnings, and are financially sound (solvent). The difference in results can be clearly see when you compare the 3, 5, and 7 year Trailing Returns History of our Aggressive Growth Index to several of the most popular traditional indexes below.
We reconstitute and reapply the earnings quality matrix to the equities in each index annually, to validate earnings quality along with earnings growth. This process is the foundation of quality control as it allows Linden Thomas to eliminate companies that no longer meet our earnings quality standard. This outcome of this discipline applied over a 10 year period can be seen when you compare the Annualized Returns of our Aggressive Growth Index to the Vanguard 500 Index.
Linden Thomas and Company has been working with high-net-worth individuals, families and businesses for more than 25 years and has been consistently ranked as a top independent financial advisor by Barron’s, Forbes and Financial Times. The disciplined institutional approach that Linden Thomas has developed is focused on creating efficient portfolios that are designed to be a results driven, and coupled with world class customer service.
Our clients are often well educated and are looking for superior results. Depending on each client’s individual risk assessment, we seek to create portfolios that are designed to attain superior risk adjusted results. What we have found is successful people want successful results. Through our disciplined approach we have not only created value in results, but our process is performed with transparency that makes the net costs clear to each client.