We consider the fall in portfolio value from high to low (drawdown) as the only relevant measure of risk; its avoidance should be at the heart of the investment process. In turbulent markets we avoid risky assets altogether and will invest entirely in cash.
We believe that market pricing and the behaviour of most investors is generally inefficient. To exploit these inefficiencies, we have developed investment processes for Equity, Commodity and Bond markets which combine value, momentum, risk and economic-stress factors.
We build portfolios that are resilient in the face of market declines and which compound positive returns more stably over the course of the market cycle. Our portfolios are comprised of three asset classes – Equities, Commodities and Bonds – which are held in different proportions depending on prevailing market conditions.