Investment Advisory

We adapt and evolve

Investment management industry nowadays is nothing compared to 10 or 20 years ago. We are open to ideas and constructive criticism because we are always learning. There is no stronger lesson than reality.

We don’t predict

Markets are random to a large extend. Forecasting is very difficult with limited probability of success, certainly less that most people think. This makes it difficult to time the markets and as a result out of our control.

Diversification is helpful but less important from what one might think

In periods of market stress, assets tend to be less diversified (correlated). A deeper interpretation is that allocation based on diversification is based on maximizing probability but not time.

Sizing is a very important tool at our disposal

Typically investors size their investments arbitrarily. We deploy sophisticated sizing of our investments, what is often called fixed fractional sizing. It is mathematically proven that fixed-fractional is a superior strategy that maximizes growth on favorable games while it protects the capital otherwise.

We are analytical and evidence based rather than emotional

Being analytical allows us to answer “why” and avoid the “believe” word in our investment decisions. Of course, things take more time to work but the end result is clear and without regret. Emotions are very bad guidance in decision making.

We follow a skin in the game mentality

Essentially all models are wrong in real life but some are useful