Investment Process

Our investment process is designed to exploit market inefficiencies while actively managing risk. Using a research-driven approach, we first identify sources of return resulting from market inefficiencies, and then develop multiple, non-correlated investment strategies to profitably exploit the excess returns resulting from the behavioral biases of investors. Our portfolio management strategies are implemented using a systematic, quantitative approach, applied in a disciplined fashion. Our most valuable strategies have the flexibility to go long or short a large number of markets around the world from a number of different asset classes. We diversify across markets, asset classes, strategies, algorithms, and timeframe. Risk, not capital, is allocated across the portfolio using a risk-budgeting approach. We select a specific risk target for each account, and actively manage market exposure to achieve it. Holding positions in only the most liquid global markets facilitates loss control, allowing us to exit losing positions quickly while letting profits accumulate. Finally, we plan for adversity (tail events) by including strategies that benefit from increased volatility.