Managed Risk Strategy

A managed risk strategy relies on the investment manager's ability to identify environments that are positively or negatively aligned for assets and strategically position the portfolio towards positively positioned assets and away from negative ones.

This strategy relies on the returns of markets and more so on the ability of the investment manager.  (See About Us page to review the qualifications and experience of our manager and founder.)

The Investment Philosophy page lays out what we think is the best approach to investing.  We believe markets and investors behave repetitively.  Human nature is just that way.  We believe it's possible to identify favorable and unfavorable investment environments and manage portfolios around specific, consistent concepts and variables.  Success is not picking any one particular incident, but by aligning favorably over time, by consistently gaining an advantage in probabilities and payouts that are larger when investments work and smaller when they don't.  Key attributes are explained below.

  • Valuation

    • Long term investment returns are determined primarily by valuations, what price is paid for assets.  Economic growth, which asset prices are logically based on, doesn't change very much.  Asset prices fluctuate much more. 

  • Sentiment

    • Investors' attitudes towards investments fluctuates in cycles. This is simply the willingness to pay for what is a fairly consistent stream of cash flows. 

  • Management

    • By identifying extremes in sentiment relative to long term valuations, exposure can be increased or decreased to lead to favorable portfolio performance.