At the core of our investment approach to fund manager selection and asset allocation is diligent research. This research-intensive investment process focuses on adding value over the long run in two ways: First, we use a tactical asset allocation approach that overweights asset classes when we believe they are priced at bargain levels. Second, our investments within asset classes are chosen based on our extremely thorough due diligence. Our underlying investment philosophy demands that all asset class overweightings and fund manager allocations be based on a very high level of conviction. We believe that setting the bar high significantly increases the probability of success over a market cycle.