What Makes Us Unique
We believe our investment approach has a number of unique and innovative features:
- Empirical and Evidence Based
- “Drawdown” is the Key Measure of Risk
- We Invest in Country Indices and Not Individual Stocks
- Our Approach is Low Cost, Low Turnover, Tax Efficient and Highly Liquid
We are driven by evidence. All of our assertions and actions are supported by rigorous and robust research.
Our default asset allocation is 100% cash. We only invest in other asset classes when conditions are supportive. We identify falling assets and prefer not to own them. Avoiding sharp portfolio drops allows our gains to be compounded over time. We set in advance a drawdown risk budget and only invest in assets according to this budget and their attractiveness.
Research shows that the choice of country in an equity allocation is one of the most significant sources of return. This is especially true in emerging markets. We rank and invest in only the most attractive countries. In commodities and bonds we identify the conditions that indicate favorable or unfavorable prospects and allocate accordingly; we “observe and infer”, we do not forecast.
We invest through low cost Exchange Traded Funds (ETFs) representing indices in bonds, commodities and equities as well as futures. Our portfolios are modular and can be customised to our client needs. There are no layers of fund fees nor illiquid assets. Our model has been shown to successfully signal major market turning points and to substantially reduce portfolio drawdowns, generating stable and persistent returns.