Philosophy

 

Our philosophy is based on our conviction that a core focus on risk-adjusted returns has the true potential to maximize total return over time, due to the fact that steady returns compound more efficiently. The paramount principle in the goal of maximizing returns over time is to avoid negative returns in order to minimize drawdowns. To preserve capital and avoid even occasional negative returns is essential in our view.

Traditional portfolios holding equities and bonds, generally carry significant market risk. In addition the correlation between equity returns and bond returns have increased over the last decade. Since capital markets are volatile and asset classes are correlated, these portfolios will inevitably suffer periods of large drawdowns, which will significantally dilute long-term returns. Consequently, it is key to actively manage risks. Reduction of portfolio volatility is achieved by a multi-strategy investment approach in combination with systematic hedging against market risk. True portfolio diversification is obtained by a set of uncorrelated investment strategies, not traditional asset classes.