Offering low-correlation, liquid hedging strategies utilizing systematic, global macro and machine learning algorithms.
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 purely scientific and academic approach along with a fresh perspective from an outside, non-Wall Street pedigree, we've developed an efficient portfolio strategy that's based on decades of data, statistical inference, simulated and actual trading.
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. Efficient portfolio
3. Max liquidity
5. Accessibility for all investors
6. For fee-sensitive investors
Make things as simple as possible - but no simpler.
Using only highly liquid index instruments or their composite holdings, our strategy involves 3 main components to control risk and grow capital:
1. Target volatility at the PORTFOLIO level.
2. Filter asset classes by MOMENTUM.
3. Size positions based on VOLATILITY - not "expected return".
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:
1. Improves risk-adjusted returns over time
2. Allows us to keep our fees to a minimum because we don't need to have teams of analysts nor need to maintain high overhead costs
Principle #2 - Evidence-based investment
Our strategies are based on influential journal articles, statistical inference, decades of data, and simulated and actual trading. We believe this maximizes the likelihood for success.
Principle #3 - Risk is more important than reward.
We believe most investors are doing it backwards: They allocate to an asset class based on its expected returns but then have to accept the full risk for that buy and hold position. Or else they play an imperfect tactical game of active investing. Both ways can result in wild swings and portfolio inefficiency that can negatively affect an investor's retirement account.
On the other hand, we believe in targeting and controlling risk first and then accepting the reward for that given level of risk. The end result is the ability to sleep better at night no matter what the markets are doing.
Active and Passive portfolio strategies
Can't decide what is better for you? We offer both Active and Passive liquid-alternative investment strategies using our style of risk management and targeting risk first. We do not believe that Active or Passive is a superior style than the other - only that Active and Passive each carry their own advantages and disadvantages.