Passive index investing is active investing. The only difference between the two is the percentage of stocks in the portfolio that are bought and sold each year (the “turnover”).
Just like in golf, we know it’s the blow-ups that ruin performance. That’s why every Brandywine fund is built to prevent them—not with predictions or market timing, but with a systematic, mathematical process designed to keep you in the game when things fall apart.
Traditional buffer and defined outcome funds protect investors by reducing losses, but at the cost of limiting gains. They do this by selling call options, which cap upside returns. Brandywine Asset Management takes a different approach. Its “Risk Replacement” strategy delivers protection that actually enhances performance, not sacrifices it.
Market risk isn’t captured by tidy formulas — the real danger lies in rare, catastrophic losses that statistical models often ignore.
Chasing performance isn't inherently bad—doing it without a plan is. A structured, disciplined strategy that follows trends can outperform emotional buy-and-hold decisions.
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Markets trend—and those trends can be quantified and traded. But most investors underperform not because they chase, but because they hesitate, override rules, or apply strategies inconsistently.
Most investors have heard the refrain: 'Trading is gambling; investing is safer.' But this myth hinges more on mindset than mechanics. The truth is, without a defined process, both trading and investing can be risky. And with a defined, disciplined process, trading can actually reduce risk and create consistent opportunities.
Contrary to popular belief, taking more risk doesn't guarantee more reward. The worst market days hurt far more than the best days help—and volatility often clusters.
Contrary to the widely preached mantra that 'you can't time the market,' thoughtful, risk-aware timing strategies can outperform passive investing—especially when avoiding extreme drawdowns.
The idea that the market returns 8–10% annually is comforting—but misleading. Real-world investor outcomes depend far more on entry and exit timing than on long-term averages.
A home services company in the Midwest that had grown by partnering with and investing in residential aftermarket service companies. Brandywine offered a structural upgrade to the company’s target date fund allocation strategy - a way to simplify the future, not react to the present.
The 'buy and hold' mantra assumes that time will smooth over volatility and generate returns. But history shows this strategy works only under specific market conditions—and can be catastrophic when those conditions shift.
The myth of intrinsic returns invites complacency. But real-world data shows that returns are earned, not given — and they’re subject to meaningful variation depending on valuation, market conditions, and sentiment. As investors, we must remain attentive to these inputs and avoid overpaying in periods of euphoria. Being selective, managing risk, and understanding return drivers is more reliable than hope.
The myth that "you can’t time the market" is wrong—every investor is already timing it, just badly. Emotional decisions cost the average trader 5%+ per year, but a disciplined strategy can turn their mistakes into your gains.
