investment philosophy

We believe that skilled tactical management of global asset classes is the key to controlling risk and enhancing return. To do this, one has to first identify those asset classes that reflect core-level risk and return; in other words, asset classes that reflect the biggest and most consistent market inefficiencies. The evidence of this is twofold: 1) consistently wide performance spreads among asset classes and among their sub-components, and 2) regular rotation in performance leadership among asset classes and among their sub-components. Normally, the size of the inefficiency is proportional to the size of the opportunity, and may be exploited through disciplined tactical management.

Further, we believe a quantitatively-based methodology that can effectively identify asset class strength and weakness works best as a strategy. We have used the same mathematical, rules-based approach since 1990. Strategies like these eliminate emotion, which is always important, especially at market inflection points when the emotional pull is strongest and the biggest mistakes are usually made. We use ETFs exclusively to implement our strategies.