About This Portfolio
The Strategy is designed to actively adapt based on forward-looking views on extreme market movements, both positive and negative, with the goal of minimizing the risk of significant loss in a major downturn while participating in the growth potential of capital markets. The Portfolio consists of 80% equities and 20% fixed income, based on a market-neutral allocation.
Why Invest
Core Solution
With diversification across global assets and a philosophy concentrated on avoiding large drawdowns while participating in upward moving markets, the Portfolio may present an attractive option for an investor’s core portfolio.
Looking Past the Average
Market environments are constantly changing, and no two time periods will ever deliver the same experience. We embrace this concept and as such, do not use average risk/return measures in our process; rather, our major focus is on the dominant role played by tail risks in compounding returns. Such returns are enhanced most by mitigation of tail losses and participation of tail gains each period of time.
Adaptive Allocation
We monitor both extreme positive and negative movements known as expected tail gain (ETG) and expected tail loss (ETL). Portfolio construction is driven by the ratio of ETG to ETL while targeting a desired level of portfolio risk with the goal of maximizing terminal value to investors.
