Jeffrey Jacob Holland established his reputation as a "market maker" at the Chicago Board of Exchange in the late 1980s and '90s, one of the most turbulent eras in the history of investing.

Jeffrey Holland

During this time, Holland began developing a number of proprietary passively-managed/index portfolios – aggressive, conservative and neutral in style – to reduce investor volatility, yet provide superior long-term returns. A fourth "balanced" portfolio recently was added.

Analysts say the key to Holland's exceptional historic risk-return ratios (see Returns) is his allocation methodology – extraordinarily diverse and detailed allocations, periodically rebalanced, across a very wide range of domestic and global asset classes, rather than reliance on any one or even two asset classes.

After a decade in the crucible of the markets, Holland's portfolios have out-performed the averages for virtually every leading benchmark. Now, as The Holland Portfolios, they are available to individual investors.

Mr. Holland is a registered investment advisor. Notably, he continues to invest his personal capital in these portfolios.

Objective

To achieve consistently superior long-term returns with reduced investment risk through a broad allocation (passively-managed, custom-indexed) of global investment classes. Every portfolio is designed and diversified to minimize volatility and provide overall risk-adjusted returns superior to investment in any single asset class.

Investment Principles

All markets are efficient: they are unpredictable over the short term, but steadily increase in predictability over time. Risk and return are related. Thus broad global diversification, along with balanced asset allocation, determines the success of an investment model.

Historical benchmarks show that: 1) passively/index-managed returns consistently exceed actively-managed results over time; 2) small cap equities bring higher returns than large cap equities; and 3) "value" (as defined by price to book) equities bring returns superior to growth stocks.

Different asset classes perform differently at different times – exactly which classes, and when, cannot be predicted. Diversification therefore is essential.

One must be invested at all times to participate fully in market returns.

About our DFA alliance

Every Holland Portfolio investor benefits from our ongoing relationship with Dimensional Fund Advisors, one of the industry's most admired research and asset management firms - a firm whose resources are not available to most individual investors. DFA works exclusively with large institutional investors and clients of selected registered financial Advisors.

For more on DFA, go to dfaus.com.