Optionality has Value

Evidence-Based Investing

Evidence-based investing, also known as systematic quantitative investing, is a discipline of constructing and managing portfolios to provide exposure to portfolio characteristics that have reliably demonstrated higher expected returns through time.

This approach relies on rigorous academic research and empirical analysis, drawing from decades of market data to identify patterns and factors—such as size, value, profitability, and momentum—that have consistently outperformed over long time horizons. By grounding investment decisions in peer-reviewed studies and statistical validation, evidence-based investing seeks to minimize speculation and emotional bias, favoring strategies that are repeatable and supported by measurable outcomes.

This approach is uniquely distinct from investment methodologies that seek to either (a) identify market mispricings or (b) achieve purely passive exposure to the market beta. The goal of a systematic approach is to emphasize segments of the market that have historically compensated investors for taking measured risk.

Integrating Catholic Values

Evidence-based systematic investing is well suited to accommodating Catholic values because it emphasizes broad factor exposures rather than reliance on specific securities.

This systematic approach allows for seamless integration of faith-based screens without compromising the portfolio’s overall structure or objectives. 

When a screen excludes a particular company—like an abortifacient company—our strategy reallocates to similar securities with comparable or even superior financial characteristics. This flexibility ensures that moral considerations are respected while maintaining disciplined, evidence-driven investment principles. For held portfolio companies, we engage with management through trusted Catholic proxy advisors and advocates to encourage virtuous management practices.