Wealth Management

The Stonegate Model


The Stonegate Portfolios employ a new model of investing: a model based not on speculation, but rather based on the science of capital markets. With decades of research guiding the way, the mission is to deliver the performance of capital markets while increasing risk-adjusted returns through state-of-art portfolio design and trading.

To understand Stonegate’s portfolio, you must first understand the principles:

  • Markets work efficiently – Any pricing arbitrages are flushed out relatively quickly. Investors seeking to beat the market through “pricing mistakes”and attempting to predict the future are too often incorrect, proving costly and futile.
  • Investing versus Speculating–Research shows time and again that active managers have not been able to beat the market consistently over the long-term. Moreover, that underperformance can have a detrimental effect on a portfolio’s long-term results. Truly, no one has a crystal ball.
  • Take risks worth taking–aspects of long-term outperformance include:
    • Equities outperform fixed income;
    • Small companies outperform large companies;
    • Value companies outperform larger higher-priced growth stocks;
    • Protecting the downside can be even more crucial than striving for additional upside gains.

Stonegate applies all of these principles to our portfolios. We begin the portfolio design process with Asset Allocation, Diversification, Overlap Avoidance, Country and Size Exposure. Then, the 4 Factor Model is applied to the portfolios for Size and Value Tilts utilizing global and domestic Institutional Indices, which lower fees and provide greater diversification. Furthermore, the Stonegate portfolios are further refined with an emphasis for potential downside protection and reduced volatility, both of which impact the emotional aspects of investing and are counterproductive to long-term goals and objectives. Therefore, we feel it is important to design portfolios that reduce volatility, but not at the detriment of returns. Lastly, we evaluate your various accounts and entities to determine best use of asset location to improve tax-efficiency.


To assist in Portfolio Design and Execution, Stonegate uses the services and Institutional Indices of Dimensional Fund Advisors (DFA)*. An extremely accredited institution with board members consisting of some of the top academic minds in finance including Nobel Prize Winners, DFA helps advise and trade for the most prestigious institutions and endowments in the country including Harvard, Stanford, and California Pension.


SECURITIES ARE HELD at top custodians/clearinghouses, such as TD Ameritrade and Pershing, with outstanding reputations and among the best execution points for clients. In addition to the custodian’s monthly statements, Stonegate provides you with independent, third-party reports consolidating all of your accounts. Our clients state that this increases their understanding of the larger financial picture, and, thus, simplifies their lives.
*Stonegate Capital Advisors and DFA, Dimensional Fund Advisors, are not affiliated.