Co-Founders' Monthly Note For Financial Advisors

June 2025:

Investment Systems Can Do Almost Anything. But Not Everything.

One of the biggest misconceptions in investing is that the best system is the one that does everything. In reality, the strongest systems are those that do a few things well — and intentionally avoid the rest.

At Blueprint Investment Partners, we believe the art of system design lies not in complexity, but in clarity and robustness. That means focusing on what works across a variety of market environments, not just what works in backtests or ideal conditions. It also means making tough decisions about what to prioritize — and being honest about the tradeoffs. Responsiveness might improve timing but increase taxes. Broader exposure might boost diversification but dilute conviction. There’s no free lunch.

Like all investment strategies, trend following comes with tradeoffs. But unlike many approaches that try to mask them, it brings those tradeoffs to the surface — where they can be understood, managed, and ultimately turned into strengths.

In this month’s Co-Founders’ Note, we explore how trend following, like life, requires choices. We also share how the current environment continues to highlight the importance of staying focused on what works — rather than trying to be everything at every time to everyone.

But first, here’s a summary of our take on what transpired in the markets in May.