Investment Philosophy

At our core, we are value investors.  We focus our equity investments to quality stocks (those which have achieved recognition by demonstrating superior fundamental quality) and index funds, particularly Exchange-Traded Funds (ETFs).

We view the market as an environment where assets are changing hands among different participant groups.  Some participant groups, such as exchange members and corporate insiders have superior track records, while others, such as the retail investor, have below average records.  We aim to always be on the same side as the smart money.

Through years of unbiased research dedicated to identifying meaningful data related to asset pricing, Drach Market Research Advisors is able to develop general frameworks and specific techniques for a variety of investment objectives.  

Our investment approach involves two categories, a Domestic Investment Style and a Global Investment Style, both of which can be specifically adapted or intertwined to meet the goals of most investors.

Domestic Investment Style

Our domestic approach involves a focus on quality, domestic stocks.  These stocks have strong histories of consistently growing their earnings and dividends.  This approach was pioneered by Robert F. Drach and is outlined in the High Return Low-Risk Investment book series, as well as in his weekly newsletter, published since 1977.  Based on several data sets, the method is a cyclical approach with predetermined buy/sell points, designed to achieve a high percentage of winning trades and take advantage of continuous positive compounding. 

Though our investment strategies are time tested, the equities market is a perpetually changing landscape and managed applications are consistently evolving.  The methods by which we measure and prioritize individual data sets are fluid, accounting for shifts in the market environment.  Drach Market Research Advisors is also continuously adjusting risk metrics to manage risk in our rapidly growing world.

Global Investment Style

Rapid globalization over the past decade inspired us to explore methodologies based on the consistency and reliability of our domestic strategy that could be successfully applied to expanding and increasingly accessible global markets. 

The diversification provided by Exchange Traded Funds (ETFs), combined with our advanced risk analysis, allows us to significantly expand the horizons of clients wanting to utilize our methodologies, without taking on additional risk.

Global Time Overlay was developed through Robert B. Drach’s extensive research, strenuous back-testing, and real-time asset management in a variety of market conditions.