Our investment philosophy, outlined in our Investment Guide, is a discussion of how we invest profitably on behalf of clients; this is a discussion of what makes it possible for us to do so. Choosing to be an active manager does not automatically bestow one with the ability to extract economic rents relative to the stock market. The vocation of money management is highly competitive at two levels. The first level is between active managers who subscribe to various investment philosophies and the market. The second level of competition is between passive managers and the market. The cost implications of active management are materially higher than those relating to passive management. However, the performance outcome relative to the market is decidedly inferior for the vast majority of active managers. Referring to the low rate of success against the market by active managers, Charlie said “there is only room for one fifth of active managers in the top 20%”. He termed it the iron rule of investing. These odds provide most with sufficient cause to align their investment thinking, to varying degrees, with the Efficient Market Hypothesis (EMH).