Molly Plain

Back Bay places a long-term focus on diversity, cost consciousness and tax efficiency. Portfolios include several types of investments, including low cost index funds and ETFs, quantitatively passive funds and actively managed funds selected for their consistent style, performance record and low expenses. Back Bay invests in a range of asset classes with growth and value style characteristics. Allocations to each asset class are determined by the anticipated long-term return, correlation to other asset classes and anticipated volatility. Portfolios include an allocation of fixed-income securities that depend on the risk tolerance of the client. Alternative investments such as domestic and international REITs and absolute return funds provide further diversification that attempts to lower volatility without sacrificing returns. There are no direct investments in limited partnerships or private equity. Exposure to alternative asset classes is achieved by investing in mutual funds selected for their liquidity, marketability and transparency. Portfolios are exposed to a wide variety of asset classes with institutional shares of mutual funds that have lower expenses than equivalent retail funds. Tax efficiency is achieved by maintaining long-term focus and avoiding frequent buying and selling. Back Bay minimizes capital gains taxes by using techniques such as locating tax-inefficient funds in tax-deferred accounts, investing in municipal bonds and utilizing tax-managed funds. The firm offers access to Dimensional Fund Advisors, Inc., an institutional money manager that offers low-cost mutual funds with a unique passive-management strategy. The DFA philosophy is based on the belief that markets are efficient and that passive investing is the surest way to achieve higher after-tax, after-cost returns. DFA does not tie funds to commercial market indices. Instead, they construct funds using quantitative measures associated with sound academic theory. Their flexibility enables them to lower costs by engaging in fewer transactions than most index funds. This strategy is beneficial in the small-cap market, where low liquidity complicates indexing and DFA's presence helps them bargain for better prices. Back Bay provides services to individuals, foundations and endowments.

Functions as a College/University

Modera Wealth aims to optimize the risk-return relationship appropriate to a client’s objectives and risk tolerance. They generally use mutual funds and exchange traded funds for all asset classes in a client portfolio. When utilizing individual stock investments, the firm follows a bottom-up process that seeks to identify high-quality companies, typically with market capitalizations of $3 billion or higher, that are currently trading at attractive or discounted valuations relative to history or to future growth prospects. Modera Wealth looks for companies with a long track record of consistent earnings and cash flow growth, healthy balance sheets, and competitive market positions. The firm prefers companies that engage in shareholder-friendly activities including a history of dividend payments and, when external growth opportunities are subpar, share buybacks.