We believe there are Three Pillars of Investment Success:
Participate in Good Markets
Risk Mitigate in Bad Markets
Look for Alpha in All Markets
Asset Allocation by Itself is Inadequate
We believe diversification to be much more than having different assets in your portfolio. We believe in diversifying portfolios across various strategies to prepare portfolios for various market outcomes, both good and bad.
When markets undergo stress, asset correlations increase dramatically. The chart below show that during times of market turmoil, different assets largely behave the same. This means that most asset rise separately but fall in unison. Diversification does not provide the benefits most portfolio managers claim.
Disciplined Process for Any Environment
We believe there is a better way to invest. It begins by recognizing that markets work in cycles.
No one can predict the markets with any consistency. Yet most investment firms either try to guess where markets will be in the future, or worse simply invest in every asset class at all times.
Our investment process does not involve guessing or trying to predict the future. We apply advanced analytical tools and a structured approach to identify which investments provide our clients with the highest probability of success in both good markets and bad markets.