Once again, we’ve had a great quarter! I have included a Monthly Performance Report from DFA, which shows the quarterly performance for all of the DFA funds. I have placed stars next to the primary DFA funds that I use in my average size portfolios. If you take a moment to review the quarterly performance of these funds, you will notice that US large companies (both value and growth) were the worst performers once again. Most of the international asset classes did better than the corresponding US asset classes. Also, small stocks did much better than large stocks. Fixed income was fairly stable.
Since we cannot know which asset classes will be the star performers, we choose to own them all. I am very pleased with the results that this strategy has produced during the last few years (compared to the standard benchmarks, such as the S&P 500 or the Wilshire 5000). This is the result of proper diversification, equal exposure to the world’s equity asset classes, and careful rebalancing of each client’s portfolio. Not only have my clients’ portfolios weathered the bear market extremely well, but they have also performed much better during the recent bull market than the standard indices (which are over-weighted towards large cap stocks).
Now, I have some important news that I would like to share with you! I have finally decided to move my business from my home to a nearby office building. For years, I have been reluctant to do this. But, I have finally realized that I need to have some administrative help, and I cannot have an employee come to my home. Also, I am spending far too much time traveling to meet with clients. Therefore, once I get settled into my new office, I am hoping to have my annual reviews with local clients in the office. I know that this will be a big change—for me and for you! Please let me know if you feel that this change will create a significant problem for you, and I will do my best to be flexible.
I will be moving to my new Easton office during the next two weeks. My address will be: 2030 Lehigh Street, #109; Easton, PA 18042. My phone and fax number will stay the same.
About Christopher Jones
Christopher Jones is the Founder and President of Sparrow Wealth Management, a fee-only financial planning and investment management firm. Before entering the investment field, Chris was a management consultant for Deloitte Monitor. He graduated summa cum laude from Brigham Young University with a B.S. in Economics and a minor in Business Management.