Acker Finley

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Description

We believe that over time, stock and bond markets are essentially efficient (priced correctly). However, we also believe that inefficiencies can exist, especially in the pricing of stocks, over shorter periods of time. In fact, mispricing can and does occur every day. This happens because investors, driven by their emotions, often overreact to good news and to bad. They also overreact to a stock?s recent price performance, expecting that it will continue rising (or falling) forever. As a result, stock prices tend to fluctuate with more volatility than the underlying company fundamentals. Over time, the market is efficient enough to recognize companies that have been penalized too harshly or valued too richly by returning its stock price to a valuation that is more in line with what the company is really worth. We call this reversion to the mean and we aim to take advantage of it through "systematic investing" a disciplined and transparent investment selection process that has no emotional attachments or biases.

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