Quantitative Medicine for Asset Managers Exposed to the "Terrible Triad"
1. Low discount rates
2. High funding liabilities & valuations
3. Increased exposure & susceptibility to tail risk events
The Terrible Triad is a conundrum that makes asset managers work harder for less return and more risk - at the beneficiaries' cost.
Necessity is a powerful motivator for invention. After being unable to find the best investment solution that would work for us, we were forced to develop it ourselves.
Using a practitioner's and an academic's approach along with a fresh perspective from an outside, non-Wall Street pedigree, we've developed an efficient FUTURES-ONLY portfolio strategy that's based on decades of multi-regime data, statistics, BOOTSTRAPPING, machine learning, simulated and actual trading - and is completely AUTOMATED yet remains under HUMAN OVERSIGHT.
Furthermore because we also invest in our own portfolios ourselves, our interests are completely aligned with our clients.
What we've been looking for and developed
1. Sharpe and Calmar efficient portfolio
3. Maximum liquidity
6. For fee-sensitive investors
Make things as simple as possible - but no simpler.
Using only highly liquid FUTURES instruments, our strategy involves 3 main components to control risk and grow capital:
1. Measure asset class price momentum.
2. Size positions based on risk.
3. Hold only the top n-ranked asset classes.
OUR INVESTMENT STRATEGY EMBODIES 3 KEY PRINCIPLES
Principle #1 - Minimize human emotion and bias
When the computer analyzes volumes of data and makes all the rules-based, investment decisions, human emotion and bias are removed from the investment process. We believe this:
Improves risk-adjusted returns over time
Principle #2 - Evidence-based investment
Our strategies are based on influential journal articles, statistical inference, backtesting, bootstrapping, machine learning, and simulated and actual trading. We believe this maximizes the likelihood for success.
Principle #3 - Risk is more important than reward.
We believe in controlling for risk first and then accepting the reward for that given level of risk. The end result is - over the long run average - the potential to beat passive investing during bull markets and still avoid prolonged drawdowns from multi-year bear markets and recessions.
Designed to beat S&P 500 (most of the time)
While there are no guarantees, we believe we are well equipped to make the decision of passive vs active almost irrelevant.
A subsidiary of Sizemore Capital Mgmt.
Based in Dallas, Texas.
Operating since 2008.
10440 N. Central Expressway, Suite 800
Dallas, TX 75231, United States
Charles Sizemore CFA
Phillip Guerra DO
Charles Sizemore CFA
Charles Lewis Sizemore, CFA is the founder and principal of Sizemore Capital Management LLC, a registered investment advisor. Charles has been a repeat guest on CNBC, Bloomberg TV and Fox Business News, and has been quoted in Barron’s Magazine, The Wall Street Journal and The Washington Post. He is a contributor to Forbes Moneybuilder, and has been featured in numerous publications and well-reputed financial websites, including MarketWatch, TheStreetcom, InvestorPlace, GuruFocus, MSN Money, and Seeking Alpha. He is also the co-author, along with Douglas C. Robinson, of Boom or Bust: Understanding and Profiting from a Changing Consumer Economy (iUniverse, 2008).
Charles holds a master’s degree in Finance and Accounting from the London School of Economics in the United Kingdom and a Bachelor of Business Administration in Finance with an International Emphasis from Texas Christian University in Fort Worth, Texas, where he graduated Magna Cum Laude and as a Phi Beta Kappa scholar. He also maintains the Chartered Financial Analyst (CFA) designation in good standing.
Phillip Guerra DO
Phillip Guerra is a data scientist and anesthesiologist in the DFW area. He finished his medical school degree from UNT Health Science Center in Fort Worth and completed his residency in anesthesiology at the University of Texas at Houston.
Dr. Guerra's data science background started with his first programming class at age 9. Over time, his skill set developed from continuous self-study and with formal training in Biometrics, Statistics, Accounting and Finance at the University of Texas School of Public Health in Houston . He has also studied the CFA Level I material. His interests in data science include automation, GBM and LSTM NN machine learning for return predictability, genetic programming for optimization, momentum and volatility factors. Medical interests include predicting patient satisfaction, patient risk-stratification, and outcomes predictability using EHR and machine learning. Dr. Guerra holds his Series 65 license, a utility patent in anesthesiology, his private pilot's license and a purple belt in Brazilian Jiu-Jitsu.
Email investor relations for more info.
info (at) physiciancapitalpartners (dot) com
Past performance does not guarantee future returns.