Our Core Philosophy

IT'S ALL ABOUT REDUCING AND MANAGING RISK 

Our mission is to control portfolio risk mitigation. We are committed to using strict stop/loss and re-entry algorithms to severely reduce the risk of catastrophic losses.  The basic premise of investing through diversification no longer works, in our opinion.  Beating the market is not as important as NOT losing money.  Does it matter if you beat the market but are still down 30%?  With the technology available today, the algorithms being created, and the strict discipline being employed by smart money managers, it just looks to us like the typical suspects in the investment community have been investing incorrectly and measuring itself in a way that’s all wrong.  It’s time to re-think how we invest.  Are you prepared for a repeat of 2008?  The old standard asset allocation models which were the lynch pin of the investing world for many years, are no longer as relevant as they once were. The idea is that they are “non-correlated”, meaning that when some go up, some go down and will be safe from market turmoil as they won’t all go down at the same time. But in 2008, non-correlated assets became correlated very quickly and all moved down at the same time.  Experts say that when trouble hits (recession, war, interest rate changes and other economic crisis’), the correlation of assets all go to one and as a result diversification stops working.  We just don’t believe market risk can be diversified away.  Asset allocation as a risk management technique is not sufficient to protect against catastrophic declines as experienced in 2008.  Price drops caused by market risk, cannot by definition, be reduced solely by diversification in our opinion.   

Rather than focusing only on diversification techniques, asset allocation models, domestic/international breakdowns, and all the rest of the one-size-fits all cookie cutter model that so many of you have experienced, we believe you should become familiar with different models going forward. (All investments and/or investment strategies involve risk including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives.)