Our Thesis
We believe that:
Investment markets are irrationally exuberant in the short-run and that the Efficient Market Hypothesis holds true in the long-term. To capitalize on this empirically evidenced phenomenon, alternative investments i.e. hedged investment strategies offer the most opportune long-term, risk-minimized, growth prospects.
Alternative investments are misunderstood and misaligned in most institutional investment programs, with an inadvertent focus on hype and fad. Consequently, the prevalence of return shortfalls, periods of sustained higher correlation between asset classes and associated return volatility have challenged institutional investors with regard to alternative investment managers and their ability to deliver alpha.
Alternative investments will continue to grow from a misunderstood investment option into a defined asset class, rewarding investors who invest for the long haul with a keen eye for selecting the right alternative investment managers.
Risk analyses need to form the starting base for every investment, not the traditionally taught benchmark comparisons. It is not how selected investments compare to benchmark constituents, but rather how their risk factors intersect with each other across a portfolio. Risk integration methods help to construct what we deem are more strengthened portfolio foundations.
Permanence of flux is the nature of the alternative investment industry. Therefore, prior results do not guarantee a similar outcome. Hence, stereotypically according a higher premium to established managers is unnecessary, vis-a-vis emerging managers.
The core of our investment theory is embodied with research rigor, discipline, and common-sense. We neither believe in the magic of high frequency trading/market timing nor speculative financial engineering. We believe in the power and prowess of sound investment allocation practices that are the lifeblood of any thriving investment program.