The Model of Investing Success.
CJM Wealth Management was founded to serve both institutional and individual clients with the very best investment management strategies based on the most modern ideas in finance. These ideas, products and services are not available through Wall Street investment firms and banks. CJM Wealth was founded in 2003 as an independent investment firm in order to build portfolios for clients using Dimensional Fund Advisors investment funds and play a leading role in providing the very best investment experiences to an entire new generation of investors and institutions.
CJM Wealth applies the Fama-French Three Factor Investment Model to all of its portfolios through Dimensional Fund Advisors. Dimensional Fund Advisors (DFA) was founded by David Booth and Rex Sinquefeld in 1980 to build funds that operate the Fama-French Factor models. The results from the Fama-French research has changed the paradigm of investing by identifying specific dimensions to stocks and their prices in markets that outperform stocks without those dimensions 98.7% over any 20-year period since 1927. CJM Wealth is among an elite 1% of the nation’s 250,000 advisors applying the Fama-French investment models to their clients portfolios.
Applying this model requires a vast scope of knowledge and work to predictably outperform the market over time. DFA executes this effort at very low costs, allowing advisors to provide lower fees to their clients. Institutional and individual clients can work with the most sophisticated advisors in the world providing services for significantly less costs that those models used by 99% of Wall Street firms. Wall Street firms are structured to place shareholder profits over building balanced, sustainable portfolios for clients. By using the Fama-French Factor models, CJM’s average fee for building a portfolio is 40-60% less expensive than the average Wall Street formula. CJM’s investment model focuses on portfolio structure, performance, efficiency and cost-effectiveness.
The Fama-French Model Premise: A portfolio’s long-term expected retur is determined by three separate risk factors:
1. The amount of stocks vs. bonds in a portfolio;
2. The size bias of the portfolio, since smaller companies tend to outperform larger companies over the long term by a factor known as the “small company premium;” and
3. The portfolio’s allocation toward “value” vs. expensive growth stocks, since less costly companies tend to outperform more expensive companies over the long term by a factor known as the “value premium.”
At CJM Wealth, our structured investing takes these three risk factors into account in conjunction with sound principles of:
• Rebalancing (i.e., selling assets that have risen in value and buying more assets that have dropped in value in order to move a portfolio back to its original target allocation to relieve volatility);
• Diversification (i.e., to spread the risk and reward with and across asset classes and capture the full performance of all sectors); and
• Asset class allocation (i.e., buying every security in an asset class to derive the full advantage of “buying and holding,” rather than being susceptible to the volatility of individual securities).
All CJM Wealth portfolios reduce turnover and excessive fees associated with unproductive churning; reduce market volatility; and maintain a focus on the client’s core investment strategy; while concurrently seeking out new opportunities with exposure to the market’s “dimensions of higher expected returns”.
Let our historically-proven, low cost, structured investment model help build your wealth. Contact CJM Wealth at: 631.777.1030 or email: Diane@CJMWealth.com
CJM Wealth is among an elite 1% of the nation’s 250,000 advisors using the Fama-French investment model which has outperformed the S&P 500 98.7% of the time in any 25-year period since 1927.
Get started on the road to wealth growth and preservation — contact CJM Wealth at 631.777.1030