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In the late 1990s, Dr. Richard Michaud dove into the problem of why modern portfolio theory works so well on paper but requires extensive tweaking to work in practice. Modern portfolio theory focuses on finding the best portfolio for a certain level of risk or return. The problem that Dr. Michaud pinpointed is that risk and return numbers are estimates, but modern portfolio theory treats these numbers as facts.

Using advanced statistics, Dr. Michaud and his son, Robert Michaud, developed a solution to the problem of uncertain risk and return estimates. Their Resampled Efficient Optimization™ was a landmark development in financial theory and is the cornerstone of New Frontier Advisors' services to this day. Resampled Efficient Optimization™ enhances return and manages risk without the time-consuming and subjective constraints required by modern portfolio theory.        

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