Our Mission
Offer Investors Best-in-class customized Tactical Asset Allocation Strategies with a singular focus on cutting edge research
- True Fiduciary Investment Advisor
- 100% Partnership Alignment with your interests
- Highly Responsive to Client needs
- Fiercely Independent
- Highest Level of Transparency and Integrity
- Practice Academic Level Rigor while maintaining real-world pragmatism
Asset Allocation Decisions Have Never Been More Important
- Macroeconomic factors have largely driven extraordinary returns of various global asset classes since the 2009 financial crisis
- Fed/ECB decisions, Interest rates, Exchange Rates, Unemployment, Inflation, Industrial Production
- Stock markets around the world today remain highly correlated with ETFs dominating the marketplace
- Typically, 50% of the performance of active funds is due to asset allocation, while 50% are due to stock picking. Our research shows that asset allocation contributions today could be as high as 75-85%
- While quant stock selection and ETFs have recently received ample attention, our research shows that a Tactical or Dynamic Asset Allocation strategy with a fundamental overlay may be highly advantageous to opportunistic investors
- TAA combines historical returns, economic projections, and fundamental metrics to estimate future returns. Based on future views of each asset class, we invest across the globe, dynamically changing our views as volatility of the marketplace changes
Managing Downside Risk through Dynamic Periods of Highly Varying Correlations and Asset Volatilities Has Become Critical
- Market crises and subsequent recoveries since 2000 have been accompanied by highly correlated declines in various financial markets including US, Europe, and Emerging markets
- These correlations lead to significant downside risk and volatility for most asset classes
- It has become difficult to manage downside risk across these different “regimes” effectively through pure long-only long-term strategic asset allocation involving diversification across global asset classes alone
- Dynamically managed portfolio with necessary nimble allocation shifts based on macroeconomic factors and external shocks could greatly help investors manage risks
- Tactical Asset Allocation strategies can generate returns by taking appropriate positions in both bull and bear markets with strong attention to managing downside risk through an appropriate risk budget
- Changing allocations frequently today is also realistic and less expensive, thanks due to liquidity of asset classes, easy availability of currency-hedged instruments and very low transaction costs