Investment Philosophy

According to the widely accepted Efficient Market Hypothesis (EMH) there are two kinds of securities markets: efficient markets and inefficient markets. An efficient market is one in which all the relevant information on each stock (or bond) is widely available; in such a market, the information has already been factored into each stock’s (or bond’s) price, and it is, therefore, virtually impossible for any analyst or portfolio manager to gain an edge in forecasting market movements or in picking which securities will rise faster than others. Examples of highly efficient markets are large-cap stocks and investment-grade bonds. Although it is not practical to expect to “beat” an efficient market, it is relatively easy to earn a return that closely parallels the market’s return. Such a return is called “Beta.”


A cost-effective way to capture Beta is through inexpensive passively managed investments that are based on market indices. In markets that are deemed efficient we do what many institutional investors do; rely primarily on indexing to capture the markets return. This relatively inexpensive "passive" style of investing doesn’t try to determine which stocks will outperform others, instead the goal is to participate in the historical upward bias of efficient markets at a very low cost. Inefficient markets are those where the relevant information on each security is much less widely available. Investment professionals have an opportunity to “beat the market” by utilizing specialized expertise and rigorous process. Examples of inefficient markets are small-cap stocks, emerging markets, and high-yield bonds. In the inefficient markets, we also do as institutional investors do: turn to talented, experienced active money managers, whose job it is to distinguish which securities will have higher rates of return than the overall market.


These active money managers have the potential to outperform--and, not surprisingly, their services cost more than the low asset management fees of indexed investments. “Alpha” is the excess return a skilled money manager can generate over and above the return of the market. Alpha is conditional; it depends on the presence of market inefficiencies and a portfolio manager having the skill to exploit them. We believe the key to capitalizing on those skills lies in giving that portfolio manager the freedom to both determine his or her own style and to act independently and quickly. To summarize, we don’t pay for value where it doesn’t exist (i.e., we don’t use active management in efficient markets), but will pay for value where it can be achieved (i.e., we do use highly skilled active money managers in inefficient markets). That way, we make sure we aren’t paying Alpha-level fees for Beta-level results. Our approach can enhance returns and help accelerate the wealth-building process.

Portfolio &
Money Management


Contact Us

4 Landmark Square - Suite 315
Stamford, CT 06901





ADV Part 2 | ADV Part 3 (CRS) Privacy Policy | Cyber Security Policy | Business Continuity Plan Client Secure Upload


Check the background of this firm on FINRA’s BrokerCheck.           


NS Capital LLC is a Registered Investment Adviser. NS Capital and its representatives are in compliance with the current filing requirements imposed upon registered investment advisers by those states in which NS Capital maintains clients. NS Capital may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. NS Capital’s web site is limited to the dissemination of general information pertaining to its advisory services, and through the NS Blog access to additional investment-related information, publications, and links.  Accordingly,  NS Capital’s web site on the Internet should not be construed by any consumer and/or prospective client as NS Capital’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.  Any subsequent, direct communication by NS Capital with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of NS Capital, please contact the SEC or the state securities regulators for those states in which NS Capital maintains a notice filing.  A copy of NS Capital current written disclosure statement discussing NS Capital’s business operations, services, and fees is available from NS Capital upon written request. NS Capital does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to NS Capital’s web site or incorporated herein, and takes no responsibility such content.  All such information is provided solely for convenience purposes only and all users should be guided accordingly.


Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by NS Capital), will be profitable or equal any historical performance level(s).


Certain portions of NS Capital’s web site (i.e. newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, NS Capital (and those of other investment professionals) positions and/or recommendations as of a specific prior date.  Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s).  Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from NS Capital, or from any other investment professional. NS Capital is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice. 


Rankings and/or recognition by unaffiliated rating services and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if NS Capital is engaged, or continues to be engaged, to provide investment advisory services, nor should it be construed as a current or past endorsement of NS Capital by any of its clients.  Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. Each client and prospective client agrees, as a condition precedent to his/her/its access to NS Capital web site, to release and hold harmless , NS Capital’s officers, directors, owners, employees and agents from any and all adverse consequences resulting from any of his/her/its actions and/or omissions which are independent of his/her/its receipt of personalized individual advice from NS Capital.

© 2020-2025 NS Capital LLC. All Rights Reserved.